Delhi high court direct union government to consider CAIT views on FDi in retail
Advocate Shilpi Jain appeared before the Court on behalf of CAIT and argued the matter. Justice Mukta Gupta while allowing the petition of CAIT issued notice to Union of India and directed to consider CAIT representation before coming to any final decision on FDI policy in retail trade. The CAIT has been given one week's time to file representation.
While making the directions Justice Gupta said, " While framing the policy, the executive is required to take views of all stakeholders to arrive at a proper decision.Since by decision of Respondents, traders would be affected,it is appropriate to take their views into consideration. Hence, the petitioners are given One Week's time to prepare a representation and presented to the Respondents and the Respondents are required to consider the same before any final decision of the matter".
In its petition the CAIT said that Current policy of FDI in Retail permitting 51% FDI in Multi Brand Retail, is creating an uneven level playing field by giving a source of abundant resources & deep finance to large retailers and MNCs and adversely affects interest of the small & medium traders and their employees as well since due to limited resources and absence of any national trade policy for retail trade and of government support, the small & medium traders are unable to compete. FDI policy is in violation of law of equality and law of prohibition of discrimination as ensured by Constitution of India.
It further said that 100% FDI is allowed in E Commerce but in B2B model but e portals by circumventing regulations are engaged in B2C business modal which is against the permitted rules and so far no action has been taken by the Government to impose any check on this.
Allowing inventory based large e-retailers to procure FDI, will shrink entrepreneurship skills of small traders since such MNC's will source product across the globe and dump in Indian market. It will also greatly affect the Indian manufacturing sector. 4. The current policy will assist the big players to monopolise and dominate the market and such dominions would decimate the local traders.
The CAIT referred to an earlier order of the Court made on 20th May, 2015 in Retailers Association of India v/s Union of India Retailers Association of India seeking level playing field and parity with e commerce. In said order, the Court directed the Union of India to consider plea of RAI.
The CAIT said that the organised retail in India constitute merely 5% whereas rest of 95% retail trade is being conducted by small & medium traders in the Country. Therefore, being the largest stakeholder in Indian retail trade, the CAIT should be taken into parleys between Govt & big retailers.
