Question : Monitoring Wing for e-Commerce

(a) whether the Government is considering to set up a special wing to monitor the functioning of e-Commerce companies and to ensure that work related to business investment in e-Commerce and providing discounts are being carried out as per the rules laid down in this regard;
(b) if so, the details thereof along with the scope and powers of the said special wing;
(c) whether the Government has received any complaints regarding the violation of foreign direct investment rules by the e-Commerce companies;
(d) if so, the details thereof along with the action taken by the Government against the quality; and
(e) whether the Government is considering to widen the scope of the definition of e-Commerce in which buying through electronic methods, marketing distribution and delivery of goods and services are likely to be included and if so, the details thereof including the steps being taken in this regard?

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI C. R. CHAUDHARY)

(a), (b) & (e): Department of Commerce initiated an exercise and established a Think Tank on “Framework for National Policy on E-commerce” and a Task Force under it and has deliberated on the challenges confronting India in the arena of the digital economy and electronic commerce (e-commerce). Some of the issues that were discussed by the think tank included aspects of e-commerce and the digital economy like physical and digital infrastructure, the regulatory regime, taxation policy, data flows, server localisation, Foreign Direct Investment (FDI), technology flows, skill development and trade-related aspects.

(c) & (d): The Foreign Direct Investment (FDI) policy is notified across various sectors, including e-commerce, under Foreign Exchange Management Act (FEMA), 1999 and any violation of FDI regulations is covered by the penal provisions of the FEMA, 1999. Reserve Bank of India administers the FEMA and Directorate of Enforcement under the Ministry of Finance is the authority for the enforcement of FEMA.

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