CAIT ALLEGES   SCAM IN UNSUAL CONCESSION TO GLOBAL  RETAILERS IN FDI IN RETAIL

CAIT URGED PRESIDENT TO ORDER FOR A PROBE

The Confederation of All India Traders (CAIT) today said that it believes that there has been some sort of a deal between the government and the multinationals that has resulted in major variations compared to the statement on FDI in Retail, laid by Union Commerce Minister Mr. Anand Sharma on 25th November, 2011 at the floor of the Parliament and the Notification issued by the Government on 20th September,2012. “What has caused these variations?” questioned Mr Praveen Khandelwal, Secretary General of the CAIT. “The government owes an explanation to the people of this country.”-The variations are major departures and sharply highlight how the government is acting against the interest of its people to favour the multinationals-added Mr. Khandelwal. Taking it as a serious matter, the CAIT has today sent a communication to President of India Shri Pranab Mukherjee to order for an independent probe in to the circumstances as to what happened between the ten months that forced the Government to make such major variations.

CAIT National President Mr. B. C. Bhartia and Secretary General Mr. Praveen Khandelwal in a joint statement today said that in the policy announced in the Parliament, 30% procurement from small and medium industries was stated as mandatory, and the Minister had made repeated references to this in mass media to sell the policy. However, in the notification it has been added that 30% procurement shall be calculated on the total procurement of first five years by global retailers. “This is a huge variation and leaves the policy without any teeth, as it gives enormous room for non-conformity. How will any government keep track of this over five years and ensure this is done?” questioned Mr Bhartia.

Another major variation relates to the location of retail outlets. The policy stated in parliament said that foreign retailers can open only in cities having population of more than 10 lakhs as per census 2011. The notification has been changed to say that in states which do not have cities with population of more than 10 lakhs, the multinationals can open outlets in any city of their choice. “This makes a mockery of Parliament and exposes the falsehood of the government” said Mr Khandelwal.

The CAIT shall be writing to all political parties to raise the issue of breach of privilege in forthcoming winter session of the Parliament. These variations will facilitate the global retailers to spread their wings without any hurdles and enable them to monopolize the retail trade in the country. The policy is hugely detrimental to the interest of not only the small industries but will have adverse impact on Farmers, Traders, Hawkers, Labours, Small industries and other sections of retail trade.

For more information please contact CAIT, Secretary General, Mr. Praveen Khandelwal@9891015165, 9310199771.