In the letter written to Mr Piyush Goyal, Minister of Commerce and Industry, CAIT (Confederation of All India Traders), accused Infosys Founder and Chairman of helping Amazon circumvent Indian laws.
The CAIT has also accused banks, including HDFC Bank and State Bank of India, of partnering with Amazon to give customers the advantage of purchasing goods exclusively from E-commerce companies, including Amazon.
As per Indian rules and regulations, it is not allowed for marketplaces to sell their inventories to the customers, but the e-commerce companies have not followed the same.
More than 70 per cent of Amazon’s business, till the end of the year 2019, came from 35 preferred vendors on the platform, as per a recent Reuters report.
Cloudtail, which is also one of Amazon’s preferred Vendors, has been a joint entity between Amazon and Catamaran Ventures. Here the Catamaran Ventures is a venture capital fund set up by N.R. Narayan Murthy.
Cloudtail India Pvt. Ltd is an online retailer of goods reorganised after the Indian govt’s 2018 clarification and Press note No. 2.
What’s inside this reorganisation –
Catamaran Ventures raised its holding In Cloudtail’s parent company Prione Business services resulting in increasing Catamaran Ventures’ stakes to 76 per cent and reducing Amazon Asia’s holding in Cloudtail to 24 per cent from the previous stake of 49 per cent.
CAIT has also put allegations on HDFC Bank and State Bank of India for partnering with Amazon. The accusation on these banks is that these banks have given customers the advantage of buying from Amazon and other e-commerce sites.
In the statement by CAIT, Amazon orders are forwarded for delivery to sellers under the control of Amazon, directly or indirectly. It also stated that many high-level employees of Cloudtail and Prione Business Services are past Amazon employees.
As per accusations made by CAIT, Narayan Murthy is fully conversant with Cloudtail functioning against the Press note No.2 of FDI Policy, yet no dissent.
Infosys co-founder Narayan Murthy has 76 per cent of holdings in Prione, and Prione owns 100 per cent of Cloudtail. Yet, the board of directors has Amazon in Majority, but the company is controlled by persons who are former employees of Amazon.
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