CAIT Slams Niti Aayog for Questioning New E-Commerce Rules

The Confederation of All India Traders (CAIT), on Saturday, had slammed the Niti Aayog for its interference in the E-commerce rules that were proposed by the Consumer Affairs Ministry. CAIT commented that on the move by Niti Aayog and said that this action was clearly a pressure more that comes under influence of foreign E-commerce giants. Praveen Khandelwal, the Secretary-General of CAIT, came down harshly on Niti Aayog saying, “It is highly unfortunate that Niti Aayog in the last seven years since its inception had done absolutely nothing to support the 8 crore traders of India and now when the Government is trying to create a level playing field in the retail sector, Niti Aayog is putting its nose in between and trying to derail the process.”

Following this, BC Bhartia, the President of CAIT said, “It is deeply shocking to see such a callous and indifferent attitude of the Niti Aayog who have remained a silent spectator for last so many years when the foreign e-commerce giants have circumvented every rule of the FDI policy and blatantly violated and destroyed the retail & e-commerce landscape of the country but have suddenly decided to open their mouth at a time when the proposed e-commerce rules will potentially end the malpractices of the e-commerce companies.”

In the press release, both of the leaders had emphasised that the Consumer Affairs Ministry should in fact implement the draft consumer protection e-commerce rules at the earliest possible time. They reasoned that this was in the best interest of the consumer as we as the traders in the country. They further added that this move would create and ensure the best quality and price for the consumers, while also creating a robust ecosystem of sustainable growth for around 8 crore Indian traders. They touted these traders as the backbone of the economy and an integral part of Prime Minister Narendra Modi’s vision of a $5 trillion economy.

These allegations come after Niti Aayog had questioned the role of the consumer affairs departments in drafting of new E-commerce rules for consumer protection. Niti Aayog had claimed that many of the provisions didn’t fall into its domain and that it should be left to other competent departments such as the DPIIT, Commerce Department, Home Ministry and IT ministries. Niti Aayog had touted that many of the proposed amendments fell ‘beyond the realm’ of consumer protection.

In an office memorandum issued on July 14, Niti Aayog said, “Based on an understanding of Proposed Consumer protection (E-Commerce) Rules, 2020, it can be said that many matters under these rules don’t fall under the ambit of the Department of Consumer Affairs. It is suggested that these be handled by other bodies (ministries or department or regulators as such MeITY, DPIIT, CCI etc) that are specialised and better equipped to address the specific nuances pertaining to these issues.”

It should be noted that several other departments had also expressed concern over the proposed consumer protection norms, arguing that it would hurt the ease of doing business as well as affect investor sentiment negatively. They argued that this was detrimental in a time when the country severely needed investment to push growth.

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