The Confederation of All India Traders (CAIT) has urged the Competition Commission of India (CCI) to suspend the business operations of Amazon, Flipkart, and other related companies, which traders claim are attempting to dominate the retail ecosystem in India.

Praveen Khandelwal, CAIT’s Secretary General Emeritus and Lok Sabha MP from the Chandni Chowk constituency in Delhi, told CNBC-TV18 that CCI’s report has identified several violations of India’s FDI policy by American companies, including deep discounting, preferential selling, and biased inventory listings.

He stated that the investments declared by e-commerce companies actually represent the losses incurred from selling discounted goods to capture market share.

Khandelwal called for a level playing field for all businesses to ensure a competitive market in India and urged for the immediate rollout of an e-commerce policy and rules framed under the Consumer Protection Act.Also read: Goyal holds discussions with 140 firms getting production-linked incentives; advocates Brand India

Expressing concern over the expansion of e-commerce businesses, he noted that 150,000 physical shops have shut down across India, with mobile retailers being the worst affected.

Speaking at the launch of a white paper on the CCI’s report regarding e-commerce giants and their impact on India’s retail ecosystem, he advocated for the appointment of an Ombudsman for the sector and the imposition of an e-commerce luxury tax to keep physical retail shops profitable.

In an interview with CNBC-TV18’s Parikshit Luthra last week, Commerce and Industry Minister Piyush Goyal stated that Quick Commerce will need to collaborate with Kirana stores for last-mile delivery to sustain its model in the long run and avoid losses.

The Minister explained that while quick commerce may capture business by incurring short-term losses, a successful business model must involve local retailers. He has previously questioned the significant social disruption caused by the rapid growth of e-commerce, labelling it a matter of concern rather than pride.

Also read: ‘Make in India’ has positioned the country as a global manufacturing powerhouse, says Piyush Goyal