Image : Representational Purpose Only
The Department for Promotion of Industry and Internal Trade (DPIIT) has received complaints that e-commerce companies are offering deep discounts, indulging in predatory pricing, exercising control over inventory and influencing the prices of goods sold on the platform, Parliament was informed .
In a written reply to the Rajya Sabha, Commerce and Industry Minister Piyush Goyal said that any violation of foreign direct investment (FDI) regulations is covered by the penal provision of the Foreign Exchange Management Act (FEMA), 1999.
The Reserve Bank of India (RBI) administers the FEMA and Directorate of Enforcement is the authority for the enforcement of the act.
“Some representations have been received in this department, complaining that e-commerce companies are offering deep discounts, indulging in predatory pricing, engaging in B2C business, exercising control over inventory and influencing the prices of goods sold on the platform,” he said.
The onus of compliance of the provisions of FDI policy is on the investee entity. The policy is made legally enforceable through notifications under FEMA, 1999, by the RBI.
