Thursday 3 December 2015

DIPP likely to back e-commerce companies in legal tussle with footwear firms

 The government is likely to back ecommerce companies in the their legal tussle with the Footwear Manufacturers and Retailers Association (AIFMRA), a senior official said. The Department of Industrial Policy and Promotion (DIPP) is of the view that the online retailers haven't violated foreign direct investment (FDI) rules as alleged by the grouping of shoemakers and brick-and-mortar shoe shops.

Such a stance could have wider implications in the battle between offline and online retail, analysts said. The department, one of the respondents in the case currently underway in the Delhi High Court, is examining the matter as it prepares its position.

The shoe retailers had alleged in their September petition that about two dozen ecommerce companies including Snapdeal, Myntra and Jabong were operating "in complete violation of consolidated Foreign Direct Investment Policy, 2015," as well as flouting Foreign Exchange Management Act (FEMA) regulations.

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