Association Of IT Bangalore (AIT) and Federation of IT Dealers, Karnataka (FITDAK) met the state IT minister S R Patil on Tuesday and gave a memorandum citing concerns on how the E-Commerce websites are not just indulging in unethical trade practices, but also causing a worrisome situation where employment of over one lakh employees is under threat.
A release from the association said that the state IT minister S R patil heard the grievances of the state IT hardware industry and assured that he would look into the matter. "I will examine the matter to ensure that the IT growth in Karnataka is not hindered. My ministry will try and find a way out to ensure that interests of all are protected" , the Minister assured the associations.
M A Sathya Prasad , president, AIT, while submitting the memorandum said, "We have been the backbone of the IT growth story in the state and now we are faced with a situation that major E Commerce sites are indulging in unhealthy trade practices by offering huge price cuts which are creating an unhealthy trend . While we are not against the customer getting best deals, but the problem is that there are gross violations of Indian tax laws by many of these sites"
The biggest concern that the IT hardware Industry has is that many traditional micro, small and medium enterprises are slowly but surely becoming unviable and several have been forced to close down and many more are under losses. The revenue models of these online business houses needs to be thoroughly and quickly investigated, and all steps to ensure they fall in line with the relevant rules and laws should be taken up so that a fair and level playing field is provided to all.
Adding to the concern is that the IT hardware sector which employs over one lakh employees is facing testing times " Its not just about the unhealthy competition in business, what will happen to the future of over 1 lakh employees whose careers are at stake" said Mr R Sridhar , Secretary Federation Of IT Dealers Association , Karnataka.
The Association Of IT , Bengaluru and FITDAK also propose to highlight the matter to the Chief Minister Siddharamaiah who holds the Finance portfolio to apprise him on the matter and seek his intervention. An appeal to this regard will also be sent to Prime Minister Narendra Modi.