CAIT National Vice President Amar Parwani, State Working President Magelal Maloo State Working President Vikram Singh Deo, State General secretary Jitendra Doshi , State Working General secretary Parmanand Jain, State Treasure Ajay Agrawal informed that Accusing Amazon for indulging into various serious contraventions of FDI Policy of the Government and Foreign Exchange Management Act (FEMA), the Confederation of All India Traders (CAIT) today came out openly in support of Future Group in its fight against Amazon for its conspiracy of illegal control of Future Group. Though we may have differences with Future Group on many issues but in its fight against a foreign Company, the traders of India & CAIT stands firmly with Indian Company to foil sinister designs of Foreign Company Amazon to take over Future Group in a very clandestine manner-said CAIT. It also questioned the silence of FICCI & CII for keeping an utter silence on the bid of a foreign company to take over an Indian Company in dubious manner. Might be some vested interest be working behind the scene-?
The CAIT earlier on 4th November, 2020 sent a detailed memorandum to Finance Minister Nirmala Sitharaman & Commerce Minister Piyush Goyal along with relevant documents for brazen violation of FDI Policy and FEMA in matter of deal between Amazon & Future Group. The CAIT demanded action against Amazon and subsequent investigation by RBI, SEBI and ED.
Amar Parwani National Vice President CAIT said it is a fundamental principle of law that what is prohibited to be done directly cannot be done indirectly but by throwing the law and the rules aside, the Amazon puts in place structures to carry out prohibited multi-brand retail activities in India by operating in a veil of secrecy and crucial documents are never disclosed having an ulterior motives which would certainly aimed to kill small businesses of India.
Parwani said that the It is the fight between Future group and Amazon, skeletons have tumbled out of the cupboard and details of further violations of FDI policy and FEMA by Amazon came to knowledge to speak about a well calculated move of Amazon in a very clandestine manner to control retail trade of India by entering into Multi Brand Retail without taking mandatory approval of the Government.
Amar Parwani also said that investments of Amazon in Future Retail Limited (through FCL) is a violation of Section 13 of FEMA, 1999 Act. It also violates Explanation (d) to Rule 23 of FEMA, violates entry route prescribed under Schedule-I of FEMA, not in compliance with Clause 15.4 of Schedule-I. It also grossly violates conditions prescribed under FDI policy. Such violation of FEMA by Amazon is a proven case to attract imposition of penalty specified in Section 13 of FEMA Act namely monetary penalty up to three times the sum involved in the contravention which means Amazon is liable for a monetary penalty of Rs.1,20,000 crore. Additionally, the Enforcement Directorate may direct that” any currency, security or other money or property in respect of which the contravention has taken place” shall be confiscated to the Central Government. Finally, the interim award passed by the Singapore Arbitrator has reportedly established that even on Amazon’s own admission, its entire investment is towards its specific controlling rights in FRL
Parwani demanded both Commerce Minister Piyush Goyal and Finance Minister Nirmala Sitharaman to take immediate action on this issue and to restore confidence of the traders in the laws & rules of the Government. He has also demanded RBI, SEBI and Enforcement Directorate to initiate proceedings against Amazon under relevant Act and Rules. CAIT will not allowed any Conglomerate to kill small businesses of India.