New Penal Provisions of Fema Ensure Protection of FDI Policy: CR Chaudhary

FDI in retail has been allowed in a calibrated manner after intensive consultations with stakeholders including concerned Ministries and departments, State Governments, apex industry chambers, associations and other organizations. Suggestions and views received from various stakeholders and public on various aspects of FDI regime are examined before taking appropriate action.

This information was given by the Minister of State of Commerce and Industry, C. R. Chaudhary, in a written reply in the Lok Sabha. He said that there is no proposal to set up a special group to keep tabs on any violation of its foreign investment policy by online retail platforms such as Amazon, Flipkart and Myntra. However, any violation of Foreign Direct Investment (FDI) policy regulations is covered by the penal provision of the FEMA, 1999.

Reserve bank of India administers the FEMA and Enforcement Directorate under the Ministry of Finance is the authority for the enforcement of FEMA. The Minister also informed the House that the Government has not made any assessment of the direct impact of Walmart and Flipkart deal on small traders.