CAIT against deadline extension for submitting comments on draft e-commerce rules

Amid reports that some companies have asked the government to extend the last date for submitting comments on draft e-commerce rules, trade body CAIT has called such demands "unjustified" and said there is no need for extension.

"The demand for extension in time is nothing but a delaying tactic of few vested interest people," Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal was quoted as saying in a statement by news agency IANS.

Calling the demand for extension of deadline "unjustified", Khandelwal said the rules are not a rocket science which needs any investigation for providing suggestions.

The trade body has been vocal in its demand for stricter rules and has alleged violation of various Indian laws by foreign e-commerce firms.

Also read: New consumer protection rules for e-commerce propose end to flash sales

Earlier, CAIT had written to Prime Minister Narendra Modi urging him to ensure that no dilution is made in the draft e-commerce rules. It had called the draft rules a much awaited step "to clean and purify highly vitiated e-commerce trade in the country".

Under the new e-commerce rules, the government has proposed to end the practice of flash sale. E-commerce entities will also have to appoint a chief compliance officer for a proper grievance redressal mechanism.

It is also proposed that e-commerce entities will not use any information collected through its platform for unfair advantage of its related parties and associated enterprises. The related parties and associated enterprises have also been prohibited from enlisting as sellers for sale to consumers directly.

The government had given time till July 6 to stakeholders to submit their comments and suggestions on the proposed changes.

Amazon.com Inc and Tata Group on Saturday told government officials that the new rules would have a major impact on their business models.

Also read: New e-commerce rules will hit businesses: Amazon, Tata Group to govt