FDI
in wholesale trading and e-commerce sectors of India under
consolidated FDI policy of India 2012 was given a major
boost by Indian government. Even the parliament of India recently
approved
FDI in e-commerce sector of India.
The business
structuring of e-commerce in India: legal research report by
Perry4Law has demarcated the techno legal requirements
that every e-commerce entrepreneurs of India must comply with. At
present, Indian
and international e-commerce players are flouting Indian laws
that Indian government is taking very seriously.
Indian
e-commerce, FDI regulations and cyber due diligence are
interrelated says techno legal experts of India. E-Commerce
Laws and Regulations in India and FDI Regulations are two
of the most important Regulations governing E-Commerce in India,
suggests Praveen Dalal, managing partner of ICT law firm Perry4Law.
While Indian E-Commerce players are well aware of FDI Regulations yet
E-Commerce Laws of India are still not followed by and large, opines
Dalal.
In fact, Indian government has already referred the
cases of Flipkart and Bharti Walmart to the Enforcement Directorate
for alleged violation of foreign direct investment (FDI)
regulations. Now Indian government has decided to start an
investigation
against Walmart for possible FDI norms violations and lobbying for
greater market access in India.
Surprisingly a majority of Indian and international
e-commerce players are not complying with legal
issues of online shopping in India. Online shopping and
e-commerce in India must be encouraged but at the same time legal and
cyber security issues must also be taken seriously. Online payment
players and e-commerce stakeholders must keep these aspects in mind
while doing business in India. There is no sense in ignoring Indian
legal issues of online shopping.
Cyber
law due diligence in India is another area that e-commerce
and online shopping platforms must take care of. Cyber
law due diligence for Indian companies is one of the most
frequently litigated aspect in India. Lack of cyber law awareness and
cyber due diligence awareness is the main reason that many websites
and companies have found themselves in the net of Indian
laws.
While structuring of investments in e-commerce
business in India both national and global financer, investors and
private equity players must keep in mind the techno legal
requirements of India. In case of doubt they may seek the techno
legal services of Perry4Law and similar law firms.
