Recently many media news have reported that the
Indian government has referred the cases of Flipkart and Bharti
Walmart to the Enforcement Directorate for alleged violation of
foreign direct investment (FDI) regulations. There is a growing
concern among Indian government to check the legality of e-commerce
businesses operating by bypassing FDI regulations.
E-Commerce
Laws and Regulations in India and FDI Regulations are two
of the most common Regulations governing E-Commerce in India, says
Praveen Dalal, managing partner of ICT law firm Perry4Law.
While Indian E-Commerce players are well aware of FDI Regulations yet
E-Commerce Laws of India are still not followed by and large, opines
Dalal.
Many media reports have claimed that Flipkart is
under the scanner for allegedly flouting FDI rules which allow
e-commerce companies with foreign investment to carry out only
business-to-business (B2B) transactions but not business to consumer
(B2C) transactions by creating complex structures that may not be
permissible.
For a legal e-commerce business in India, the
e-commerce
businesses structuring in India must be done with due
regard to applicable laws of India. The legal
research report by Perry4Law for business structuring of e-commerce
in India has given a special emphasis to techno legal
compliances for that e-commerce players of India must follow.
For instance, Cyber
Law Due Diligence in India and Cyber
Due Diligence for Indian Companies are equally applicable
to E-Commerce Players of India, suggests Dalal. There is a general
Apathy among E-Commerce Players of India towards complying with these
Statutory Requirements, opines Dalal.
In their own interest, the e-commerce entrepreneurs
of India must take e-commerce compliances seriously as non compliance
may attract civil, criminal and financial punishments.
