by IANS |
New Delhi, Dec 16 (IANS) The Confederation of All India Traders on Thursday urged Union Finance Minister Nirmala Sitharaman to ban Chinese e-commerce company Shopee, which it claimed to be operating in India against FEMA Rules and FDI Press Note of 2020.
The traders body urged the Centre to take immediate cognisance of the matter.
According to the 2020 rule, an entity of any country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only through the government route.
CAIT accuses the Chinese e-commerce company Shopee of violating the rule.
Shopee is a Chinese e-commerce giant which has commenced its operations in India through an entity, SPPIN India Pvt Ltd, held by two holding companies, SPPIN I Pvt Ltd and SPPIN II Pvt Ltd, both registered in Singapore, the traders' body claimed in the letter to Sitharaman.
"These two entities are in turn held by another parent company SPPIN Ltd, registered in the Cayman Islands. This complex structuring of entities is nothing but an attempt to hoodwink the Indian government and infuse Chinese funds into India," the letter added.
"As such, I request you to examine, enquire (sic) and take necessary action as may be deemed appropriate in law against the mobile application, Shopee and the corresponding website, www.shopee.in, and all similarly situated entities, including SPPIN India Private Ltd."
The traders' body also alleged Shopee of being adopting "predatory pricing tactics", thereby distorting competition in the market.