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    CAIT alleges FDI violations by Thailand-based LOTS Wholesale

    CAIT alleges FDI violations by Thailand-based LOTS Wholesale

    CAIT alleges FDI violations by Thailand-based LOTS Wholesale
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    By CNBC-TV18  IST (Published)

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    The Confederation of All India Traders (CAIT) accused supposedly B2B operator LOTS of violating the provisions of the FDI policy for cash and carry trading by selling directly to customers for their personal consumption.

    Traders’ body CAIT  has demanded strict action against Siam Makro Public Company Ltd-owned LOTS Wholesale Solutions for blatantly flouting the foreign direct investment (FDI) policy.

    In a complaint to the Union Minister for Commerce And Industry Piyush Goyal in July this year, the Confederation of All India Traders (CAIT) accused LOTS of violating the provisions of the FDI policy for cash and carry trading, by engaging in B2C retail trade or multi-brand retail trading and selling directly to customers for their personal consumption.

    The CAIT also alleged that Siam Makro sells goods to customers who do not have any tax registration by making invoices using fabricated goods and services tax (GST) numbers that the former has access to or by issuing supplementary registration cards.

    As per the LOTS Wholesale Solutions website, it was established in India in January 2017. LOTS Wholesale Solutions is a wholly-owned subsidiary of Siam Makro Public Company Ltd, Thailand's leading cash and carry operator in wholesale for professional business operators.

    LOTS Wholesale Solutions is a wholly-owned subsidiary of Siam Makro Public Company Ltd, Thailand's leading cash and carry operator part of CP Group, which started its B2B operations in India since January 2017.

    In India, LOTS Wholesale Solutions is owned/operated by CP Wholesale India Private Ltd.

    CAIT alleged, "Since the beginning, LOTS, has been violating provisions of the FDI policy for Cash and Carry Trading, by engaging in B2C retail trade/multi-brand retail trading (MRBT) and selling directly to customers for their personal consumption, which is prohibited for foreign entities like LOTS. This is being done blatantly across the various stores at present located in Delhi."

    The CAIT also urged Goyal to pass strict directions to prohibit LOTS from carrying on MRBT/B2C Retail Trade in the garb of B2B Wholesale Trade and levy a penalty of Rs 3,000 crore as per the Foreign Exchange Management Act (FEMA).

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