CAIT seeks probe into Rs 5 stores by Shopsy

Small traders body Confederation of All India Traders (CAIT) has sought Finance Minister Nirmala Sitharaman to probe Rs 5 and Rs 9 stores of Walmart-backed Flipkart and Shopsy. Shopsy provides home solutions where one can buy goods starting from Rs 5 with no shipping charges.

Flipkart is killing small traders with predatory pricing and deep discounting tactics. This is a blatant violation of FDI laws as well, said CAIT Secretary General Praveen Khandelwal.

In a communication to Sitharaman, he sought to know how a small trader is expected to compete with such loss-making Rs 5 stores? How can there be a level playing field for small traders if foreign-owned e-commerce companies are allowed to get away with such disregard for laws?

CAIT also urged the finance minister to probe into Rs5 stores of Shopsy by Flipkart.

In his tweets Khandelwal also requested Sitharaman to waive the mandatory requirement of GST number for trade on e-commerce, saying small traders are adversely impacted and not able to take advantage of the e-commerce vertical.

"CAIT requested FM Smt Nirmala Sitharaman for an investigation into Rs 5 stores of Shopsy by Flipkart. Flipkart killing small traders with predatory pricing and deep discounting tactics. Blatant violation of FDI laws as well,” Khandelwal tweeted.