‘Suspend Amazon’s e-commerce portal’: CAIT urges Piyush Goyal over bribery case

Trade body Confederation of All India Traders (CAIT) has written a letter to Commerce Minister Piyush Goyal, asking for a CBI probe into the allegations of bribery against e-commerce giant Amazon. The body said that Amazon must be directed to suspend its e-commerce portal and the incidental activities in the duration of the probe.

“Since the matter is very serious and sensational, it is also requested that pending CBI inquiry, Amazon should be directed to suspend their e-commerce portal and other incidental activities immediately,” stated the traders’ body, adding that it is pertinent to do so in order to protect the e-commerce market and retail trade from undue influence, abuse of dominance and connivance with government officials.

This letter comes a day after a news report stated that legal representatives of the company indulged in bribery. A whistleblower flagged the bribery issues, following which Amazon started off an investigation into the bribery allegations and the conduct of its legal representatives. The report stated that a senior employee has been put on leave.

Amazon issued a statement and said that it has zero tolerance for corruption and will take necessary action.

The traders’ body said that it needs to be ascertained if these developments have any connection with the ongoing anti-trust probe against Amazon and Flipkart for reportedly abusing their dominance through deep discounts and preferential treatment to some vendors.

It stated that a CBI probe will reveal the truth and name of the officials involved in this case which should be made public. CAIT suggested that the strictest of actions must be taken against these officials.

The trader body has said that it will also write to Gary Genester, Chairman of the US Securities and Exchange Commission (SEC) that is the custodian of the FCPA law of the country. They will also demand a fair and independent probe from the Corporate Governance Committee of the Board of Directors of Amazon in the USA.

Also read: ‘Zero tolerance for corruption,’ says Amazon as it investigates bribery complaint in India