<p>The Delhi High Court Monday sought the Centre's reply on a plea challenging a provision in the Consumer Protection (e-commerce) Rules which mandates that an entity selling goods and services online has to be registered as a company in India.</p>.<p>A bench of Chief Justice D N Patel and Justice Prateek Jalan issued notice to the Ministry of Consumer Affairs seeking its stand on the petition by an individual who provides online content creating services.</p>.<p>The petitioner, Dhruv Sethi, has contended that the rule under challenge forces sole proprietorships like his to register as an incorporated company for carrying out e-commerce business.</p>.<p>Senior advocate Anand Grover and advocate Samyak Gangwal, appearing for Sethi, told the court that the effect of the impugned rule was that every business enterprise which is not a company is excluded from the e-commerce space or they will have to sell through platforms like Amazon or Flipkart.</p>.<p>The bench, during the hearing, suggested that the petitioner can get listed on Amazon to sell his goods and services.</p>.<p>To this suggestion, his lawyers said that then he would have to pay Amazon for the same which he would not have to do if he is selling it himself.</p>.<p>The petition claims that the norm is beyond the rule making powers of the central government under the Consumer Protection Act.</p>.<p>Sethi, who also sells custom merchandise like t-shirts through his portal 'Where Next Daily', has said he would be personally affected by the rule.</p>.<p>He has contended that the rule is ultra vires the Constitution "as it discriminates against all forms of legitimate business organisations like sole proprietorships, limited liability partnerships, hindu undivided families, etc."</p>
<p>The Delhi High Court Monday sought the Centre's reply on a plea challenging a provision in the Consumer Protection (e-commerce) Rules which mandates that an entity selling goods and services online has to be registered as a company in India.</p>.<p>A bench of Chief Justice D N Patel and Justice Prateek Jalan issued notice to the Ministry of Consumer Affairs seeking its stand on the petition by an individual who provides online content creating services.</p>.<p>The petitioner, Dhruv Sethi, has contended that the rule under challenge forces sole proprietorships like his to register as an incorporated company for carrying out e-commerce business.</p>.<p>Senior advocate Anand Grover and advocate Samyak Gangwal, appearing for Sethi, told the court that the effect of the impugned rule was that every business enterprise which is not a company is excluded from the e-commerce space or they will have to sell through platforms like Amazon or Flipkart.</p>.<p>The bench, during the hearing, suggested that the petitioner can get listed on Amazon to sell his goods and services.</p>.<p>To this suggestion, his lawyers said that then he would have to pay Amazon for the same which he would not have to do if he is selling it himself.</p>.<p>The petition claims that the norm is beyond the rule making powers of the central government under the Consumer Protection Act.</p>.<p>Sethi, who also sells custom merchandise like t-shirts through his portal 'Where Next Daily', has said he would be personally affected by the rule.</p>.<p>He has contended that the rule is ultra vires the Constitution "as it discriminates against all forms of legitimate business organisations like sole proprietorships, limited liability partnerships, hindu undivided families, etc."</p>