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100 pc FDI permitted in online retail as per new rules

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The Centre informed Delhi High Court on Friday about the press note it had issued in March this year. The note made it clear that 100 per cent foreign direct investment (FDI) via automatic route will be allowed in online retail which are operating under ‘marketplace model’.

The documents were tabled before Justice Rajiv Sahai Endlaw by Additional Solicitor General (ASG) Sanjay Jain. He said that after taking the press note of March 29 into consideration, the plea of All India Footwear Manufacturers and Retailers Association against FDI in e-commerce was “infructuous”.

The petitioner association, however, confronted that the norms of FDI, despite release of the press note, were still being violated. The body has asked for more time from the court to plan out further course of action.

The bench, thereafter, has presented a list of matters for hearing on May 23. During this hearing, the association will decide whether they would want to further challenge the press note by amending the current petition or file an new one.

As per the press note, although 100 per cent FDI has been permitted in e-commerce following a marketplace model, online retailers under this category will also be restricted from discounting more than 25 per cent from a single vendor.

The high court had previously directed the Government to put an inquiry on 21 e-commerce websites who were reported for alleged violation of FDI norms.

Read More:Traders to protest against FDI in e-commerce
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Government permits 100 per cent FDI in e-commerce

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