Fair trade regulator CCI is looking into alleged anti-competitive conduct of online retail firms such as Flipkart India, Amazon, Jasper Infotech and Xerion Retail, the government has said.
“An information has been filed by Mohit Manglani in the Competition Commission of India (CCI) against alleged anti competitive conduct of online retailers like Flipkart India, Jasper Infotech, Xerion Retails, Amazon Seller services, Victor E-commerce and other similar e-commerce/portal companies. The matter is under consideration of the commission,” Minister for Consumer Affairs, Food and Public Distribution Ram Vilas Paswan said in a written reply to the Rajya Sabha on Friday.
E-commerce firms have come under the scanner of the Competition Commission following massive discount sale offered by them.
On tax evasion by online retailers, Mr. Paswan said trades done through online/internet portal are subject to income tax as per provisions of the Income Tax Act, 1961. However, at present, Direct Tax collection data is not being maintained based on the mode of business/trade conducted online or otherwise.
Based on complaints received from consumers being duped by “fly by night” e-retailers, the government had referred cases of five companies Gold Quest International, Questnet Enterprises, SpeakAsia Online, Unipay2U group of companies and AbcIndya Networks to its investigation arm for corporate frauds, SFIO.
The SFIO investigation confirmed that these companies had duped customers through web based investments and other products, the minister stated added that the government has asked “SFIO to file prosecution under provisions of Companies Act, 1956 and Indian Penal Code against three companies i.e. GoldQuest International (including its group company), Questnet Enterprises and AbcIndya Networks.”
He added that investigation for Unipay2U group of companies and SpeakAsia Online is under examination.
