Sellers Put Paytm Under Scanner For Flouting FDI Norms

Sellers Put Paytm Under Scanner For Flouting FDI Norms

The cashback offers on Paytm have brought it under DIPP‘s scanner for flouting FDI norms.@AIOVA3– Giving discount or not is prerogative of the seller owning inventory. FDI permitted in marketplace, not in inventory based model. Ecommerce entity offering the marketplace will not ‘directly or indirectly influence the sale price of goods or services. @AIOVA3– Sellers may or may not be manufacturers. Case specific clarification may be sought from DIPP using prescribed format.

The department of industrial policy & promotion (DIPP) clarified that giving discount is a prerogative of the seller only. The clarification was in response to the query raised on Twitter, by the All India Online Vendors Association (AIOVA). AIOVA represents about 500 medium-to-large sellers on various ecommerce platforms.— DIPP India (@DIPPGOI) May 5, 2016— DIPP India (@DIPPGOI) May 5, 2016

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