CAIT writes to Piyush Goyal seeking action against q-comm firms
Traders' body CAIT's National President, BC Bhartia, has accused quick commerce platforms of misusing funds received through Foreign Direct Investment (FDI)
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The apex body of traders, the Confederation of All India Traders (CAIT), has written to Union Commerce Minister Piyush Goyal, seeking his intervention and action against quick commerce companies for alleged violations of laws and regulations. A letter by the CAIT highlighted how quick commerce players like Zomato-owned Blinkit, Zepto, and Swiggy Instamart were misusing foreign investments to distort the country’s retail market. Last month, CAIT released a white paper on this matter, a copy of which has also been sent to Goyal. CAIT has also sent the white paper along with a letter to the Chief Ministers of all states.
CAIT National President BC Bhartia accused quick commerce platforms of misusing funds received through Foreign Direct Investment (FDI). He stated that these companies control suppliers, dominate inventory, and arbitrarily determine product prices. He alleged that quick commerce companies' primary objective is to eliminate small neighborhood grocery stores. CAIT emphasized that such business strategies create an uneven playing field, making it nearly impossible for over 30 million small grocery shops across the country to survive.
CAIT Secretary General and Chandni Chowk MP Praveen Khandelwal strongly criticized quick commerce companies, accusing them of driving small retailers out of the market. He said these companies blatantly violate FDI policies and flout the Competition Act. They seem to have little regard for Indian laws and regulations.
Khandelwal also referred to recent remarks by Goyal, where he expressed concerns about quick commerce and suggested connecting such platforms with local kirana stores. Khandelwal has announced plans to lead a delegation of traders to meet Goyal soon regarding this issue. Meanwhile, CAIT is organizing a two-day national seminar in Delhi on January 6-7 to stress on the trade issues.
According to Bhartia, quick commerce companies have raised over Rs 54,000 crore through FDI but have neither invested in infrastructure nor created long-term assets. Instead, they have used these funds to cover business losses, control supply chains, and offer deep discounts through select vendors, which is highly objectionable. He pointed out that these companies have set up numerous dark stores across the country for supply, which is against the rules prohibiting them from establishing any kind of store.
Bhartia added that quick commerce companies make exclusive deals with select vendors, eliminating competition for independent retailers. Additionally, they withhold vendor information from consumers, violating the Competition Act and consumer rights. These companies manipulate prices and control inventory through unilateral agreements, which adversely impact fair competition.
CAIT stated that the unchecked growth of these foreign-funded companies poses a significant threat to India’s small retail sector. The organization urged the government to enforce strict monitoring of quick commerce companies through consumer protection (e-commerce) rules and e-commerce policies. CAIT also demanded immediate steps to ensure these companies comply with laws and regulations.
