Indian sellers urge Infosys co-founder Narayana Murthy to part ways with Amazon
The Indian Sellers Association, in an open letter to Infosys co-founder NR Narayana Murthy, urged him to end the partnership between Amazon and Cloudtail India, a joint venture between the e-commerce giant and Murthy’s Catamaran Ventures.
The Indian Sellers Association is a non-governmental trade association that represents the voices of micro and small businesses and family businesses across India.
The letter to the co-founder of Infosys stated that Murthy was the idol of millions of Indians. He adds that Murthy’s greatest achievement has been his adherence to the dharma of law and the narrow and his continued emphasis on honesty, integrity, fairness, values and transparency. However, that has changed since 2014, the letter explains.
The association accused Murthy of being in cahoots with Amazon over a name-lending deal in which Cloudtail India acts as a front for the e-commerce giant’s retail business. The letter explains that this has sullied the objectives behind the policies of the Indian government.
The letter adds that just for a fixed fee or returns, the Infosys co-founder endangered the livelihoods of small Indian traders and left them at the mercy of Amazon. The Indian Sellers Association has alleged that Cloudtail India is Amazon India’s biggest seller. He adds that on paper, the partnership between Amazon and Cloudtail India does not violate FDI regulations. The letter explains that in reality, Clouadtail India is owned and controlled by the “mysterious” Hober Mallow Trust, reports the new agency.
The letter further explained that Cloudtail’s senior management as well as the majority of its board members are all former Amazon employees. He adds that in 2018, the Center amended laws to end such practices of foreign companies establishing shell companies in the country for their retail interests. He added that Murthy had increased his stake in Cloudtail to 74% but that no other changes had taken place.
Commenting on the matter, Ashwani Mahajan, national co-organizer, Swadeshi Jagaran Manch, said foreign retailers who run e-commerce portals in the country have found creative avenues to circumvent the Centre’s laws on FDI in commerce. Retail. concern within the Indian seller community, necessitating continued strengthening of policies governing Indian e-commerce. Amazon India, through deals with companies such as NR Narayana Murthy’s Cloudtail, engages in predatory pricing and discounts, thus destroying the business of offline retailers and small sellers, ”added Mahajan.
Abhay Raj Mishra, president of Public Response Against Helplessness and Action for Redressal (PRAHAR) explained that foreign e-commerce retailers operating in India have repeatedly mocked the spirit of the law while respecting the letter. “Amazon’s secret deal with Cloudtail, a majority company of NR Narayana Murthy is a glaring example of this,” Mishra said.
A spokesperson for the e-commerce vendor organization AIOVA called Cloudtail an “economic terrorist”. “It is sad to see Murthy team up with an economic terrorist called Cloudtail who is crushing thousands of e-commerce vendors inspired by Murthy’s successes,” the spokesperson said.
“It must once again live up to its alliance with Amazon India and Hober Mallow Trusts and Catamaran,” urged Dhairyashi H. Patil, president of the All India Consumer Products Distributors Federation (AICPD).
Shriram Baxi, general secretary of the Federation of Distributor Associations of India (FAIDA) has indicated that cash-rich Indian entrepreneurs are too ambitious and use smart tactics to evade the laws. Baxi added that these people must be stopped before they push people into slavery, as the East India Company did years ago. “It is high time that our lawmakers understand the urgency of the problem, review the regulations and undertake the political reforms necessary to ensure severe penalties and sanctions for violators,” Baxi said.
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