The Union Government has directed the Enforcement Directorate and the Reserve Bank of India to take appropriate actions against Amazon and Flipkart which is owned by Walmart, the move comes as a development of the tussle between e-commerce giants and traders of India.

The Union Government took the matter into its cognizance after the Confederation of All India Traders (CAIT), filed several complaints about the violations of the Foreign Direct Investment (FDI) and Foreign Exchange Management Act (FEMA) 1999, by the e-commerce companies.

BC Bhartiya, National President of CAIT and General Secretary Praveen Khandelwal told the media that after the confederation made complaints Union Minister of Commerce, Piyush Goyal, the Department of Promotion of Industries and Internal Trade (DPIIT) of the Ministry of Commerce in its letter issued on December has asked both Enforcement Directorate and Reserve Bank of India to take necessary action against Amazon and Flipkart.

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They also said that in the letter to ED and RBI, the DPIIT has forwarded four complaints of CAIT including violation of FDI policy in a deal between Flipkart and Aditya Birla Group, violation of FDI policy related to FDI in manufacturing which is being used for Multi Brand Retailing by various e-commerce companies, violation of FEMA and its rules by Amazon and blatant violation of FEMA and FDI Policy by Amazon and Flipkart and exploitation of loopholes by them.

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According to the CAIT, traders across the country will be observing 2021 as "Bhartiya Vyapaar Samman Varsh", making efforts to clear the e-commerce landscape in the country and era of manipulations, malpractices and exploitation.

CAIT in 2021, in order to widen the traders net in India, will be promoting and encouraging its member to adopt digital payment services and other digital means for the ease of customers.