Govt gets complaints against e-commerce firms like Flipkart

Ram Vilas Paswan said that over the last three years a total of 12 complaints have been received

The government has received 12 complaints against e-commerce companies such as Flipkart and Newlook Retails in the last three years for alleged money laundering, fraud transactions and unfair trade practice, among others, Lok Sabha was informed today.

The Centre has also received representation from various associations demanding regulation of e-commerce business in the country, Consumer Affairs Minister Ram Vilas Paswan said.

"As reported by Ministry of Corporate Affairs, over the last three years (2012-13 to 2014-15) and during the current year till date, a total of 12 complaints have been received against e-commerce companies", Paswan said in a written reply to the Lok Sabha.

The complaints have been made against alleged money laundering, hiding of operation details, fraud transactions, non-delivery of goods, unfair trade practice, among others, he said.

Out of the 12 complaints, seven were against Newlook Retails, three were against Flipkart Internet and one each against G-Link Revenue E-Com and Bhaap Online Retails, according to the data placed before the Lower House.

Asked if the government has received demands for regulating e-commerce industry, Paswan answered in affirmative.

"As regard safeguarding the interest of small retailers and domestic traders, important policy decisions taken by the government include the introduction of the public procurement policy for small and medium enterprises, restricting FDI to single brand retailing and business-to-business segment of e-commerce", he said.

The e-commerce activities are essentially commercial or business oriented and therefore, come under the purview of different laws like the Shop and Establishment Act, Sales of Goods Act, Companies Act, Indian Penal Code, Income Tax Laws among others, he added.

Paswan also said that e-commerce transactions are covered under the Consumer Protection Bill, 2015, which was introduced in the Lok Sabha in August this year.