New Delhi. Confederation of All India Traders Confederation of All India Traders (CAT) has alleged violation of FDI policy and rules on Metro Cash and Carry in the country. Cat says that due to this, more than 70 percent business has been reduced in the cities, small traders are on the verge of ruin, but now the trader will not sit silent, will be freed from their clutches. This information was given by CAT General Secretary Praveen Khandelwal in a press conference held in New Delhi today. He said that soon he will meet Finance Minister Nirmala Sitharaman and Commerce Minister Piyush Goyal and demand action against Metro AG company for violation of laws. He said that in this way the economy of the country is also being harmed by the company.
Praveen Khandelwal said that CAIT has welcomed foreign companies to do business in India, but they should compete directly with the traders. Merchants will not accept any kind of encroachment on their business through violation of laws. Due to violation of law by Metro, business of small traders especially grocery, FMCG goods, consumer durables, personal use items are being adversely affected. CAIT has urged Union Commerce Minister Piyush Goyal to take immediate cognizance of the matter and take appropriate action.
He said that Metro Cash & Carry has 31 stores across the country. Under the FDI law, they can do only B2B business, that is, they can sell only wholesale goods. He alleged that Metro always wanted to run a direct B2C business in India, which Indian laws and regulations do not allow for foreign companies. . Regulations allow them to sell only to business customers, who can in turn sell to end consumers.
Indian companies allowed to sell to end consumers
In order to protect the livelihood of more than 80 million small retailers of the country, only Indian companies are allowed to sell to the end consumers. More than eight crore small retailers have a business of 130 lakh crores annually, all these shopkeepers follow the laws.
This is how the economy is being damaged
CAIT said that this kind of business also leads to loss of GST. The company sells cheap goods by violating the rules, in which GST is less, if the same goods were sold according to the small shop rule, then it would have been charged according to the GST price. Which would benefit the economy of the country.
Four cards made on one GST number
CAIT also accused the company of making four-four cards on one GST number. The GST number is a merchant, a card has to be made on it, but the company is making four or four cards on one number, which is a violation of the law. He said that people take trolleys in metro stores, whereas wholesale shopkeepers do not take trolleys, it means people are buying retail goods from the store, which is legally wrong.
Demand for immediate action from the government
National President BC Bhartia and Secretary General Praveen Khandelwal said in a joint statement that according to media reports, Metro Germany is looking to sell India’s business and earn a profit of more than Rs 10,000 crore on its investment in India. Which is nothing but diversion of wealth by earning huge profits in India in the last years. These profits have been made in violation of every law of the country for the last 20 years at the cost of the Government of India and small Indian traders. He demanded that the government should take immediate cognizance of this and take action.
Tags: business, CAIT, Confederation of All India Traders
FIRST PUBLISHED : June 30, 2022, 16:40 IST