E-commerce business Shopwho claims to be of Singaporean descent and faces controversy over FDI breaches in the country, was hit by an FIR filed by a client in Lucknow for allegedly defrauding him.
In the FIR, filed at Mohanlalganj Police Station in Lucknow on January 15 and seen by IANS, the complainant, Shashank Shekhar Singh, said he ordered products online from Shopee on December 10, but had received duplicate products.
The FIR has named Shopee, its parent company SPPIN India Pvt Ltd, based in Bengaluru, and senior company officials.
According to Singh, he ordered three products worth Rs 840, Rs 399 and Rs 1,299 from Shopee. What he received were not the products featured on the platform, but their fake variants, accusing the e-commerce platform of defrauding him.
In a statement to IANS, the platform said: “Shopee is a Singaporean company, not a Chinese company, committed to helping small Indian businesses thrive through their online e-commerce marketplace. company aims to partner with India’s digital economy mission while contributing to the Aatmanirbhar Bharat Abhiyan.”
Last month, the Confederation of All Indian Traders (CAIT) had urged Finance Minister Nirmala Sitharaman and Trade Minister Piyush Goyal to ban Shopee, saying it operates in India against FEMA rules and the memo. 2020 FDI Press.
Shopee is an e-commerce giant that started operations in India through an entity named SPPIN India Pvt Ltd, owned by two holding companies, SPPIN I Pvt Ltd and SPPIN II Pvt Ltd, both registered in Singapore, has said the trades organization in the letter.
“These two entities are, in turn, owned by another parent company SPPIN Ltd, registered in the Cayman Islands. This complex entity structuring is nothing but an attempt to deceive the Indian government,” wrote CAIT General Secretary Praveen Khandelwal in the letter.
The merchants body also accused Shopee of adopting “predatory pricing tactics”, thereby distorting competition in the marketplace.
In November last year, the Delhi High Court asked the Center to respond to a plea seeking to block e-commerce websites and mobile apps operated by SPPIN India Pvt Ltd under the name Shopee.