Lok Sabha Question No. 132 (STARRED), answered on 2015-12-08
Subject: e-Commerce
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: JAGDAMBIKA PAL, NISHIKANT  DUBEY

## Government of India Ministry of Consumer Affairs, Food and Public Distribution Department of Consumer Affairs

## LOK SABHA STARRED QUESTION NO. *132

TO BE ANSWERED ON 08.12.2015

## E-COMMERCE

- *132.  SHRI JAGDAMBIKA PAL: SHRI NISHIKANT DUBEY:

## Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether  the  Government  has  been  received  complaints  including  fraud,  cheating,  tax evasion  predatory  pricing,  mis-selling,  privacy  concerns  etc.,  against  the  e-commerce companies,  if  so,  the  details  of  such  complaints  received  during  each  of  the  last  three years and the current year along with the action taken thereon, e-commerce company/site-wise;
- (b) whether  the  Government  has  received  requests/demands  from  various  associations  and public representatives regarding need for regulating e-commerce business in the country and to provide a level playing field to the traditional traders, if so, the details thereof and the  reaction  of  the  Government  thereto  indicating  its  impact  on  small  retailers  and  the steps taken to protect their interest;
- (c) whether  there  is  a  multiplicity  of  rules  regulating  e-commerce  which  is  affecting  the interest of the companies, and if so, the details thereof; and
- (d) whether  the  e-commerce  transactions  are  proposed  to  be  covered  under  the  consumer protection bill and if so, the details thereof?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=ky; ea=h ¼Jh jke foykl ikloku½

CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION

## THE MINISTER OF (SHRI RAM VILAS PASWAN)

(a) to (d) :

A Statement is laid on the Table of the House.

*****

## STATEMENT  REFERRED  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  LOK  SABHA STARRED QUESTION NO.*132 FOR 08.12.2015 REGARDING E-COMMERCE.

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- (a) : As reported by Ministry of Corporate Affairs, over the last three years (i:e 201213 to 2014-15) and during the current year till date, a total of 12 complaints have been received against  e-commerce  companies.  The  complaints  have  been  made  against  alleged  money laundering,  hiding  of  operation  details,  fraud  transactions,  non  delivery  of  goods,  unfair  trade practice  etc.  The  company  wise  details  of  complaint  and  follow  up  action  taken  is  given  at Annexure.

(b) & (c): Yes,  Madam.  The  e-commerce  activities  are  essentially  commercial/  business oriented  and  therefore  come  under  the  purview  of  different  Laws  /Act  like  the  Shop  and Establishment Act, Sales of Goods Act, Companies Act, Indian Penal Code, Income Tax Laws, Information  Technology  Act,  the  Competition  Act  and  the  Consumer  Protection  Act,  etc.  As regard  safeguarding  the  interest  of  small  retailers/domestic  traders,  important  policy  decision taken by the Government include  the introduction of the public procurement policy for Small and Medium Enterprises (SMEs), restricting Foreign Direct Investment to Single Brand retailing and to Business to Business segment of e-commerce.

(d) : Yes, Madam. The Consumer Protection Bill, 2015, since  introduced in the Lok Sabha on 10.8.2015 also covers e-commerce transactions.

*****

## STATEMENT  REFERRED  IN  REPLY  TO  PART  (a)  OF  LOK  SABHA  STARRED  QUESTION  NO.*132  FOR  08.12.2015 REGARDING E-COMMERCE.

## STATEMENT  SHOWING DETAILS OF COMPLAINTS RECEIVED AGAINST E-COMMERCE COMPANIES DURING 2012-13 TO 2014-15 AND CURRENT YEAR(TILL DATE) IN RESPECT OF PART(A)

| PERIOD                   | NAMEOF COMPANY                               |   NOS.OF COMPLAINTS RECEIVED | DETAILS OF ALLEGATIONS                                                                                          | ACTION TAKEN                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------------------------|----------------------------------------------|------------------------------|-----------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 01.04.2012 to 31.03.2013 | 1.M/s Newlook Retails Private Limited.       |                           02 | Serious nature of complaints relating to money laundering.                                                      | The Ministry of Corporate Affairs has already issued order on 01.10.2012 to carry out inspection of Books of accounts and other records of the concerned company to examine the violations under various provisions of the Companies Act,1956.The Inspection Report submitted by the Inspecting Officer has already been examined and instructions has already been issued to the concerned Regional Director and Registrar of Companies, Mumbai for initiating penal action for violations under the provisions of the Companies Act,1956. |
| 01.04.2012 to 31.03.2013 | 2. M/s G-Link Revenue E-Com Private Limited. |                           01 | Serious nature of complaints relating to money laundering and unauthorized collection of funds from the public. | The complaint has been forwarded to the Ministry of Finance & also to the Economic Offence Wing for suitable action for the allegations made therein. The necessary prosecution for violation under section 234 of the Companies Act, 1956 has also been initiated.                                                                                                                                                                                                                                                                         |
| 01.04.2013 to 30.03.2014 | 1.M/s Newlook Retails Private Limited.       |                           01 | Serious nature of complaints relating to money laundering and unauthorized collection of funds from the public. | The Ministry of Corporate Affairs has already issued order on 01.10.2012 to carry out inspection of Books of accounts and other records of the concerned company to examine the violations under various provisions of the Companies Act,1956.The Inspection Report submitted by the Inspecting Officer has already been examined and instructions has already been issued to the concerned Regional Director and Registrar of Companies, Mumbai for initiating penal action for violations under the provisions of the Companies Act,1956. |
|                          | 2.M/s Flipkart Internet Private Limited.     |                           01 | Not disclosing the true and complete identity and even the address of the registered office on the website.     | The complaint received by e-mail (without complete postal address) was taken up with the concerned company and reply of the company received thereon was sent to the complainant by e- mail.                                                                                                                                                                                                                                                                                                                                                |

| 01.04.204 To 30.03.2015   | 1.M/s Newlook Retails Private Limited.       |   04 | Serious nature of complaints relating to money laundering and unauthorized collection of funds from the public.   | The complaint was forwarded to SEBI as well as Department of Financial Services, Ministry of Finance for necessary action as the allegations were related to multilevel marketing & money circulation.                                                                                                                                                              |
|---------------------------|----------------------------------------------|------|-------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 01.04.204 To 30.03.2015   | 2.M/s Flipkart Internet Private Limited.     |   01 | Fraud transaction of Rs.49,669/- on the complainant's ICICI Bank Account.                                         | The reply of the concerned company was sent to the complainant on 02.02.15 and advised him to approach RBI's Banking Ombudsman in r/o his complaint since the matter does not come under the purview of the Companies Act.                                                                                                                                          |
| 01.04.204 To 30.03.2015   | 3. M/s Bhaap Online Retails Private Limited. |   01 | Non delivery of product even after making the payment.                                                            | The complaint received by e-mail (without complete postal address) was taken up with the concerned company. The reply of the company received thereon was sent to the complainant by e-mail advising him to move on application before the appropriate Forum for redressal of his grievances since the matter does not come under the purview of the Companies Act. |
| 01.04.2015 to till date   | 2.M/s Flipkart Internet Private Limited.     |   01 | For deficiency in service and unfare trade practice                                                               | The complaint received by e-mail (without complete postal address) was taken up with the concerned company. The reply of the company received thereon was sent to the complainant by e-mail advising him to move on application before the appropriate Forum for redressal of his grievances since the matter does not come under the purview of the Companies Act. |
|                           | Total                                        |   12 |                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                     |

Note:-Data Compiled based on the information received from The Ministry of Corporate Affairs.