In a war of tweets, the Department of Industrial Policy and Promotion (DIPP), has said that that it is responsible only for formulation of FDI policy which is notified under Foreign Exchange Management Act (FEMA).
It said the RBI "administers" the FDI policy while the Enforcement Directorate is the "enforcing authority".In a war of tweets, the Department of Industrial Policy and Promotion (DIPP), has said that that it is responsible only for formulation of FDI policy which is notified under Foreign Exchange Management Act (FEMA).
It said the RBI "administers" the FDI policy while the Enforcement Directorate is the "enforcing authority".
The DIPP's response came#
The DIPP's response came after traders' body Confederation of All India Traders (CAIT) alleged violation of FDI norms in the e-commerce sector by Flipkart and Paytm. In response to a tweet of CAIT, it said that it is responsible only for formulation of FDI policy which is notified under Foreign Exchange Management Act (FEMA).
"FDI policy violation part of penal provisions of FEMA. RBI administers and ED is its enforcement authority of FEMA," DIPP said in a tweet.
DIPP's response came after CAIT Secretary General Praveen Khandelwal in a tweet has said that the department needs to be straightforward in the issue of e-commerce FDI.
"Why keep eye closed on violation by Paytm and Flipkart etc," CAIT had tweeted.
CAIT has consistently demanded that the government should fix the loopholes and provide a level-playing field to small retailers. (SH)
Fibre2Fashion News Desk – India
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