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FDI violation complaints are forwarded to right agencies: Prabhu

Press Trust of India  |  New Delhi 

Complaints related to alleged violation of FDI norms by players are forwarded to Directorate and as they are the right agencies to look into them, Commerce and said today.

"Suppose I receive a complaint...we forward it to the right agencies because they are the ones who are supposed to take cognisance. We are not making any value judgement on it. Violations are looked into by agencies mandated for them," he told reporters here.

Prabhu was replying to a query on the ministry's action on allegation of violation of foreign direct investment norms in the sector.

RSS-affiliated Swadeshi Jagran Manch (SJM) had alleged that US Walmart was circumventing rules for a back-door entry into with its majority stake acquisition of

Traders body CAIT too has filed complaints with the ministry on the issue and violation of FDI in rules by certain

(DIPP) said that after the policy is made by the department, it is notified under the FEMA (Foreign Exchange Management Act) by with

Any infringement of the law or allegation is investigated by the ED, Abhishek said.

On the Walmart-deal, he said: "Under the e-commerce FDI policy, only the marketplace model is allowed. So the investment that they have is being made, what we have heard, in is a marketplace model. Their (Walmart's) operations of business-to-business and cash and carry is separate".

last month announced acquisition of 77 per cent stake in Flipkart for about USD 16 billion (Rs 1.05 lakh crore) in the largest which will give the US retailer access to the Indian that is estimated to grow to USD 200 billion within a decade.

Domestic traders alleged that the deal is nothing but a clear attempt to control and dominate the in by Walmart through e-commerce in the long run.

Replying to a question about US demand of cutting customs duties on motorcycle, Prabhu said that every country wants more and more market access for their products.

"We will formally hear from them and then we will respond it as appropriate and we will deal with that issue," Pabhu said.

The is visiting next week to discuss trade and investment related issues with his US counterpart.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, June 08 2018. 15:25 IST
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