Key Points

CAIT, which claims to represent over 90 million small businesses across the country, said it aims to strategise and mobilise a nationwide movement against the alleged unethical and unlawful practices of these e-commerce companies. The conclave is expected to be attended by more than 100 top trade leaders from different states of the country, according to a CAIT statement.

CAIT has accused these platforms of systematically undermining India's traditional retail sector by misusing Foreign Direct Investment (FDI) to fund predatory pricing, control supply chains, and establish monopolistic dominance. Such practices are reportedly pushing over 30 million small retailers and kirana stores towards extinction, threatening the livelihoods of approximately 250 million individuals dependent on the retail trade.

CAIT alleges that these companies have acquired FDI but have not invested in building infrastructure development, but to subsidize losses and offer deep discounts through select vendors, violating FDI norms.

They are not doing trade but have deeply involved in " valuation game", said CAIT.

The brick and mortar traders have also accused these online platforms of breaching the Competition Act, 2002, by entering exclusive agreements, manipulating pricing, and withholding critical information from consumers, thereby restricting market competition and consumer choice.

CAIT has further alleged that the operation of numerous "dark stores" across the country for deliveries is seen as a direct violation of FDI policies that prohibit e-commerce entities from maintaining inventory and establishing retail outlets.

"These commerce platforms are no less than the modern-day East India Company," stated CAIT National President B.C. Bhartia.

"Their objective is to dominate the market by eliminating small grocery and retail stores, creating an uneven playing field that threatens the livelihood of over 3 crore kirana shops in India."

CAIT Chairman Brij Mohan Agrawal said that CAIT has previously submitted a comprehensive white paper, highlighting these concerns and urging immediate regulatory intervention. The organisation emphasizes that the unchecked growth of these foreign-funded companies poses a significant threat to India's small retail ecosystem.

He informed that on 16th May, a day long conclave will be held at New Delhi and in 17th and 18th May a Chintan Shivir has been organised at Vrindavan by the CAIT where trade leaders across the country will decide agitational program against these Companies which will be conducted in more than 500 cities across the Country. The modalities of the agitation will be decided in Chintan Shivir.

The conclave will culminate in a unified call for action, demanding that these e-commerce and quick commerce companies either comply with Indian laws and fair trade practices or exit the Indian market, the CAIT statement added.

- IANS