Latest News | Amazon's Plan to Take over Cataraman's Stake in Prione Holdings Gross Violation of FDI Policy: CAIT

New Delhi, Dec 23 (PTI) Domestic traders body CAIT on Thursday claimed that e-commerce major Amazon's plan to acquire Prione Business Services - its joint venture firm with Catamaran - will be a violation of foreign direct investment policy.

Amazon has said it will acquire Prione Business Services, subject to requisite regulatory approvals.

Also Read | Tecno Camon 18 Debuts in India at Rs 14,999; First Sale on December 27, 2021.

In August, Amazon and NR Narayana Murthy's Catamaran had announced that they will not continue their joint venture Prione Business Services beyond May 2022.

Amazon has applied to the Competition Commission of India (CCI) for approval to buy Catamaran Ventures' 100 per cent stake in Prione Business Services Pvt Ltd, and if the approval from CCI is given to Amazon, "it will be a gross violation of the FDI policy", Confederation of All India Traders (CAIT) has said in a statement.

Also Read | WhatsApp Reportedly Working on New Interface for Voice Calls.

It would be a violation because Amazon will have complete control over a seller on its marketplace platform and this will convert the online company from being a marketplace platform to an inventory based platform, which is strictly prohibited under the FDI policy, it added.

Despite facing multiple investigations by various Indian agencies like the Enforcement Directorate and Competition Commission of India, Amazon has been "relentlessly" adopting various means to "circumvent" India's sovereign laws, it noted.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)