CAIT says e-tailer still flouting FDI norms

To create a level-playing field for small and medium players, the Centre brought in a new e-commerce policy and fresh rules around FDI in the sector in February this year that forced online marketplaces like Amazon India to change its ownership pattern in local partners like Cloudtail and Appario Retail.

However, this has not stopped anti-market “predatory pricing” and “deep discounting” practices as violations of the e-commerce norms continued during the year, especially in the festive season, allege traders’ bodies who intensified the protest against deep discounts and disruptive offers by e-commerce majors Amazon and Flipkart by organising a day-long hunger strike in several parts of the country on December 27.

“We want Indian e-commerce market free from all glitches, unhealthy and unfair business practices, and till the government takes any action, our national agitation will continue,” said Praveen Khandelwal, Secretary General of the Confederation of All India Traders.

To comply with stringent e-commerce regulations, Amazon.com has already sold much of its stake in its desi partner Cloudtail, a joint venture between the Jeff Bezos’ behemoth and software major Infosys founder NR Narayana Murthy’s Catamaran Ventures.

Amazon sold 25 per cent of its shares to Prione Business Services, a company run by Catamaran. According to media reports, Prione now owns 76 per cent of the venture and the remaining 24 per cent is reportedly owned by Amazon Asia-Pacific Resources Ltd, a non-Indian arm of the US retailer. Thus, Cloudtail technically is no more an Amazon company and is eligible to sell on the marketplace.

Catamaran is now being headed by ex-Infosys CFO Ranganath Mavinakere. Appario Retail is a wholly-owned subsidiary of the joint venture between Amazon India Ltd and Ashok Patni, the co-founder of Patni Computer Systems.