Regulatory policy

Government says it has received complaints against online businesses alleging violation of FDI policy

The government has received complaints from trader and industry associations against online retail companies alleging breach of FDI policy in the e-commerce sector, Parliament was informed on Friday. It has been alleged that some e-commerce entities in the marketplace have created complex ownership structures and engage in an inventory-based e-commerce model through controlled vendors/preferred sellers, the minister said. State of Commerce and Industry, Som Parkash, in a written response. in the Rajya Sabha.

Any violation of FDI regulations is covered by the criminal provisions of the FEMA (Foreign Exchange Management Act). The Reserve Bank of India (RBI) administers FEMA, while the Enforcement Branch (ED) of the Ministry of Finance is the enforcement authority.

Such complaints against e-commerce entities have been forwarded to ED, he said.

“The government has received complaints from merchant and industry associations against e-commerce market entities alleging violation of foreign direct investment (FDI) policy in the e-commerce sector,” Parkash said. .

In a separate response, he said that over the past five years, 6,576 patents have been granted to the pharmaceutical sector, including 4,902 to foreign entities, 1,143 to private companies and 291 to research institutes in India. .

He informed that in 2020-21, a total of 28,391 patents were granted, compared to 24,936 in 2019-20 and 15,283 in 2018-19.