COUNTRYWIDE DHARNA
31102014
COUNTRYWIDE DHARNA STAGED TODAY BY OFFLINE RETAILERS ON ONLINE RETAIL FIASCO
STRONG DEMAND OF FORMATION OF RULES & REGULATIONS & REGULATORY AUTHORITY
STRONG DEMAND OF FORMATION OF RULES & REGULATIONS & REGULATORY AUTHORITY
In their first major show of resentment and anguish over current fiasco on online retail business, the offline traders across the Country staged series of Dharna today at more than 150 cities in different states of the Country led by a Dharna at Jantar Mantar at New Delhi. The series of Dharna was held under the umbrella of the Confederation of All India Traders (CAIT) demanding investigation into business modules of online retail platforms and their pricing mechanism and formation of a regulatory authority to regulate and monitor all sorts of retail trade in India.
The Dharna, held in the wake of unrealistic discounts offered by online retailers in the just-concluded Diwali festival was held in Mumbai, Chennai, Hyderabad, Bangalore, Calicut, Cochin, Kolkata Chandigarh, Lucknow, Nagpur, Baroda, Kanpur, Dehradoon, among other places. In Delhi, beside large number of other organizations’, the Dharna was prominently joined by Delhi Mobile Dealers Association, Delhi Computer Dealers Association, All India Distributors Association, Consumer Electronics Traders Association, Book Publishers Association etc.
Addressing protestors at New Delhi, CAIT Secretary General Mr. Praveen Khandelwal said that business of offline retail was down by at least 45% because of the predatory pricing mechanism and non-transparent & unchecked business practices adopted by e-retailers. There has to be a law for conducting any format of trade in the County and therefore like US, UK, China & European Countries where they have established Rules & Regulations for e-retail, India too must have specific Act, Rules & Regulations for E Commerce business in India-said Khandelwal.
In USA, E Commerce business is regulated through Federal Trade Commission and in UK, the E Commerce business is regulated through Electronic Commerce (E C Directive) Regulations, 2002 whereas in European Union it is regulated via EU Electronic Commerce Directive. In such a situation, the Government must immediately formulate Rules & Regulations for Indian E Commerce Business. China too has various rules & regulations to keep a check on e retail business.
Not only the offline trade but entire India Uninc comprising of Traders, Transporters, SMEs, Truck Operators, Farmers, Hawkers, Cooperative institutions and Consumers will be motivate to join hands together to demand cleaning operation of E Commerce in India. The CAIT has convened a meeting of senior officials of Brand Companies in Mobiles, Consumer Electronics, FMCG, Computers & other segments, on forthcoming 5th November at New Delhi since their respective brand image is also being affected and the long established confidence between Companies & the offline retailers is at stake-said CAIT.
We are neither against online retail format of trade nor against any online retailer but the business practices of online retailers are dicey having no Government check, unfair, unhealthy and against all business norms thereby creating an uneven level playing field which is badly affecting the offline trade and that is why we are demanding Rules & Regulations for entire retail spectrum of the Country-said Mr. B.C.Bhartia, CAIT National President.
Brick and mortar stores have to pay numerous taxes and undertake large-scale paper work, while e-retailers are registered in one state and making deliveries across the country, causing revenues losses to states, where they are not registered. Under the present structure, the business executed through online retail remains unchecked. No tax authority of any State could firmly say up to what extent the goods are being consumed in their respective State through online retail. Therefore, a check of taxation authorities is more necessary like offline trade.
It is most astonishing and surprising that loss making companies are offering huge discounts and yet financers including business tycoons are advancing finances to them on a large scale. It can happen only in India and that too in online retail trade-said CAIT. Certainly, it creates a doubt as to why the financers are more interested in financing entities which are running in losses? Obviously, there could be some hidden reasons-said both Mr. Bhartia & Mr. Khandelwal.
Delhi State President of CAIT Mr. Ramesh Khanna said that CAIT seeks constitution of a Special Task Force of taxation experts to examine the compliance of taxation obligations of e-retailers and to study whether there is any tax avoidance. CAIT also wants the Centre to set up a joint committee of senior officials and stakeholders to study the impact of online retail business on offline markets in addition to constituting a Board of Internal Trade for development of business avenues in domestic trade and its empowerment and to upgrade and modernize the existing retail trade.
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Recent Amendments in the FDI policy on the Construction Development
31102014
In line with the Budget announcement of the Government, the Union Cabinet gave its approval for amending the existing Foreign Direct Investment (FDI) policy on the ‘Construction Development Sector’.
The measures taken by the Union Government are expected to result in enhanced inflows into the Construction Development sector. Given the shortage of land in and around urban agglomerations as well as the high cost of land, the measures are likely to attract investments in new areas and encourage development of plots for serviced housing. The measures are also expected to result in creation of much needed low cost affordable housing in the country and development of smart cities.
The amendments in the FDI policy, contained in the Consolidated FDI Policy Circular 2014 are as follows:
1) 100% FDI under automatic route will be permitted in the construction development sector.
2) Investment in the Construction Development Sector will be subject to the following conditions:
(a) Minimum area to be developed under each project would be:
1) In case of development of serviced plots, there is no condition of minimum land.
2) In case of construction-development projects, a minimum floor area would be of 20,000 sq. meters.
3) In case of a combination project, any one of the above two conditions will need to be complied with.
(b) The investee company will be required to bring minimum FDI of US$ 5 million within six months of commencement of the project. Subsequent inflows of FDI can be brought till the period of ten years from the commencement of the project or before the completion of the project, whichever expires earlier.
(c) The investor will be permitted to exit on completion of the project or after three years from the date of final investment, subject to development of trunk infrastructure.
(d) The Government may, in view of facts and circumstances of a case, permit repatriation of FDI or transfer of stake by one non-resident investor to another non-resident investor, before the completion of the project. These proposals will be considered by FIPB on case to case basis.
(e) The project shall conform to the norms and standards, including land use requirements and provision of community amenities and common facilities, as laid down in the applicable building control regulations, bye-laws, rules, and other regulations of the State Government/Municipal/Local Body concerned.
(f) The Indian investee company will be permitted to sell only developed plots. For the purposes of this policy “developed plots” will mean plots where trunk infrastructure including roads, water supply, street lighting, drainage and sewerage, have been made available.
(g) The Indian investee company shall be responsible for obtaining all necessary approvals, including those of the building/layout plans, developing internal and peripheral areas and other infrastructure facilities, payment of development, external development and other charges and complying with all other requirements as prescribed under applicable rules/bye-laws/regulations of the State Government/ Municipal/Local Body concerned.
(h) The State Government/ Municipal/ Local Body concerned, which approves the building / development plans, will monitor compliance of the above conditions by the developer.
For further details, please refer to the following linkhttp://pib.nic.in/newsite/PrintRelease.aspx
Issue 74
