FDI is not allowed in inventory-based ecommerce model and marketplaces cannot offer heavy discounts or influence prices to lure buyers according to a recent government notification, hindustantimes.com reports.
The Internet and Mobile Association of India (IAMAI), a lobby group founded by online portals, wants the government to allow 100% FDI in inventory-based B2C ecommerce activities. The retailers have petitioned commerce minister to take action against those who violate the FDI rules.
The Delhi High Court had ordered in November 2015 the Enforcement Directorate to investigate whether e-tailers were flouting rules. RAI is awaiting that report, which is expected in May 2016, after which it will plan its legal recourse.
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