Indian e-commerce business sector and foreign direct investment in India (FDI) have never shared a smooth relationship. For long FDI in e-commerce segment of India was restricted. It is only now that Indian Parliament has allowed use of FDI in multi-brand retail during the winter session of Parliament (December 2012).
Any business activity must be undertaken within the permissible and legal boundaries. However, both national and international e-commerce players in India are not following the laws of India in true letter and spirit.
India’s exclusive techno legal law firm Perry4Law has already shared a legal research report regarding business structuring of e-commerce in India. Presently, Indian e-commerce, FDI regulations and cyber due diligence are not complied with by various national and international e-commerce players.
So much so 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. Now it has been reported that a probe against Walmart has been ordered by Indian government for possible FDI norms violations and lobbying for greater market access in India.
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 and International E-Commerce players are well aware of FDI Regulations yet E-Commerce Laws of India are still not followed by and large, opines Dalal.
It is in the interest of national and international e-commerce players to follow the laws of India in true letter and spirit. Further, it is also necessary on the part of Indian government to take FDI and legal violations by national and international e-commerce players seriously.