New Delhi: Some government departments have expressed concern over the norms of consumer protection proposed for e-commerce companies, with that reason it will have an impact on the ease of doing business and overall investment sentiments.
While some agencies have shared their feedback with the Ministry of Consumer Affairs, which tested the initiative, officials said the proposal created many challenges for e-commerce players, starting with the license of Raj.
“When you ask someone to register, which has been suggested, you ask them to queue and start the bureaucratic process,” said senior government officials told.
Under the proposed rules issued for discussion, each e-commerce player needs to register with the department for industrial promotion and internal trade.
The display in several departments is that there is a need for investment to help the economy recover from the effects of the breath of the second wave of Pandemic Covid-19.
Some government officials said there was nothing to do to thwart the atmosphere of investment and every effort must be made to build a raft of reform measures that have been launched by the government to attract investment.
The design of the rules, released for public comments, has triggered a counter-attack from the industry, especially from foreign investors, who were wary of government regulations, and complained of changes in periodic rules.
Some looked at the rules as a falling an intense lobby by a strong trader lobby and several homegrown companies that have been formed into e-commerce.
Government officials also said that the ministry of consumer affairs also disrupted the Indian regional competition commission and something best avoided, given that independent institutions were established under the law to examine monopoly behavior.
Govt Depts: E-comm rules for crashing into investor sentiment
