Traders body, CAIT has compared Amazon with East India Company in the colonial era which acquired Indian states one by one and monopolized Indian business.
“The recent statement made by Indian origin Future Retail group to go for liquidation as a consequence of a acquisition battle of Amazon reminds us the colonial era when East India Company initiated the process of killing Indian business ecosystem in the same manner by acquiring Indian States one by one and controlled & monopolised Indian business,” said Praveen Khandelwal, Secretary General of the Confederation of All India Traders (CAIT) today while commenting upon the statement of Future Retail.
It is an alarming bell for the Indian government and conglomerates of Corporate India and has exposed sinister designs of Foreign funded MNCs to control Indian retail trade-added, said Khandelwal.
He further said that Amazon itself is facing probe in India on various charges of gross violation of FDI policy of the Government and is trying hard not to face the legal system of the Country but is invoking jurisdiction of a foreign panel for its own issues.
CAIT National President B.C. Bhartia said that at a time when existence of an Indian Company is at stake, CAIT stands in solidarity with Future Retail since its an Indian Company and we will spare no efforts in lending assistance of 7 crore traders to any Indian Company in its battle against any Foreign Company.
However, Bhartia questioned the silence of Industry bodies like FICCI and CII who always claim to be the advocates for industry and commerce in India.
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Both said CAIT may have several differences with Indian origin companies like Future Retail and to resolve such issues, the CAIT will always seek intervention of the government and court of law being an internal matter of the country.
“However, if any Foreign Company will try to invade the Indian business system through any means, the CAIT will stoutly oppose and foil any such move,” they added.
Bhartia and Khandelwal said that the recent step by Amazon to invoke jurisdiction of Singapore International Arbitration Centre Rules, related to a deal between Future Retail & Reliance Group is nothing but a sheer tactic to overpower and control Future Retail and thereby control about 1500 retail stores of FRL.
“They said that prima facie, if there was any dispute, Amazon should have invoked the jurisdiction of Indian Arbitration Act but choosing Singapore based panel for Arbitration, depict the ulterior motives of Amazon and speaks about some sort of conspiracy,” they added.
Bhartia and Khandelwal while cautioning the Indian corporate sector from foreign funded MNCs said that before entering a deal with Foreign MNCs, the Corporate sector should make due diligence and ensure that their deal must not inflict any sort of COVID in retail sector of India which is providing employment to more than 40 crore people. Short term gains are always detrimental to the larger interest of the country.
Both also urged Kishore Biyani to make sure that payments of Distributors fraternity and suppliers of Future Retail must be made as early as possible and they should not be landed into any trouble, a solemn assurance which has given to CAIT and All India FMCG Distributors Association.
