The Commerce and Industry Ministry has turned down a proposal of the Consumer Affairs Ministry to bring the e-commerce sector under the purview of nine different departments, saying it would create problems for investors.

“The Department of Commerce wants that the e-commerce subject should be handled by only one centre point and if the Consumer Affairs Ministry is ready for that they have no issues,” a senior official told PTI.

According to the proposal of the Consumer Affairs Ministry, the sector should be handled by nine departments and regulatory bodies, including the RBI, Home Ministry, the Department of Revenue, and the Corporate Affairs Ministry.

Rejecting the proposal, another official said the Department of Industrial Policy and Promotion (DIPP) also wants the Consumer Affairs Ministry to take care of issues related to e-commerce “as nine different departments would create problems for investors”.

Currently, most consumer-related disputes and complaints about the e-commerce sector are dealt by the Department of Consumer Affairs.

However, the Consumer Affairs Department has suggested that e-commerce involved complex issues, including foreign investment and inter-State sale of goods through portals, and hence the different aspects should be regulated by all the departments concerned.

The official said the matter would be discussed at a high-level meeting of the Committee of Secretaries soon.

E-commerce trade is growing at a rapid pace and there is uncertainty about its regulations. Expressing concern over huge discounts being offered by e-commerce firms, the traders’ body the Confederation of All-India Traders (CAIT) too has asked the Government to take steps to monitor and regulate online businesses.

According to estimates, the sector’s market size in the country was around $5 billion annually.

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