LOTS Wholesale does retail sales, violating FDI rules: CAIT

LOTS


Chennai, Aug 16 : The Confederation of All India Traders (CAIT) has complained to the Centre against the Siam Makro Public Company Ltd that owns LOTS Wholesale Solutions of violating the FDI policy by retailing to end consumers. The CAIT also alleged that Siam Makro sells goods to customers who do not have any tax registration by making invoices using some fabricated goods and services tax (GST) numbers that the former has access to or by issuing Supplementary Registration Cards. As per 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 Limited, Thailand's leading cash and carry operator in wholesale for professional business operators. In India, LOTS Wholesale Solutions is owned/operated by CP Wholesale India Private Limited. In a complaint to the Union Minister for Commerce and Industry Piyush Goyal in July this year, CAIT alleged: "Since 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). An email sent by IANS to LOTS Wholesale/CP Wholesale India seeking their comments remained unacknowledged. /IANS




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