The trade organization Confederation of All India Traders (CAIT) has written a letter to Trade Minister Piyush Goyal asking for a CBI investigation into allegations of bribery against e-commerce giant Amazon. The agency said Amazon must be instructed to suspend its e-commerce portal and ancillary activities for the duration of the investigation.
“As the matter is very serious and sensational, it is also requested that Amazon be instructed to immediately cease its e-commerce portal and other ancillary activities pending the CBI investigation,” said the retailer organization, adding that this was pertinent to the Protect the e-commerce market and retail trade from undue influence, abuse of domination and tolerance with government officials.
That letter comes a day after a news report found that the company’s legal representatives gave in to bribery. A whistleblower drew attention to the issue of bribery, prompting Amazon to investigate the allegations of bribery and the conduct of its legal representatives. According to the report, a senior executive has been given leave of absence.
Amazon issued a statement saying it has zero tolerance for corruption and will take the necessary action.
The merchants’ panel said it needs to be determined whether these developments are related to the ongoing antitrust investigations against Amazon and Flipkart for allegedly abusing their dominance through high discounts and preferential treatment from some vendors.
It stated that a CBI investigation will reveal the truth and names of the officials involved in the case, which should be made public. CAIT suggested that the strictest measures be taken against these officials.
The dealers board has announced that it will also write to Gary Genester, chairman of the US Securities and Exchange Commission, which is the guardian of the country’s FCPA law. They will also request a fair and independent review from the Corporate Governance Committee of Amazon’s Board of Directors in the United States.
Also read: “Zero tolerance for corruption,” says Amazon when investigating bribery complaints in India