CAIT REACTED SHARPLY TO THE STATEMENT OF DELHI CM ON FDI IN RETAIL

CAIT REACTED SHARPLY TO THE STATEMENT OF DELHI CM ON FDI IN RETAIL                  

 UNION GOVERNMENT IS MAKING CONFUSIONS AND MISLEADING THE COUNTRY

The Confederation of All India Traders (CAIT) has expressed deep shock over the statement of Delhi Chief Minister made today at a Seminar organized  on FDI in Retail by a College that FDI will go a long way to improve the economy and prices will be stabilized. The CAIT further regretted that statement of the Chief Minister that no retailer has so far approached the Delhi Government to express anticipated difficulties because of FDI in Retail because the CAIT itself has given various memorandums to Delhi Government on the repercussions of FDI in Retail. It said that it is the Union Government which is making confusions and misrepresentations of the facts and figures on various issues related to FDI in Retail. CAIT Secretary General Mr. Praveen Khandelwal said that he is challenging the Union Government to prove him wrong and he is ready to have an open debate with anyone in the Government on this issue which has been made a “Pandora box” by the Union Government. He apprehended that even the Chief Ministers of different States have been mis-informed by the Union 

Government.

CAIT Secretary General Shri Praveen Khandelwal reminded the Chief Minister that about two weeks before when the traders gathered at her residence to express thanks and gratitude to her for taking due cognizance of the issue of the traders related to VAT, the issue of FDI in Retail was raised out of context on which the Union Minister Shri Kapil Sibal offered to hold talks with the traders on FDI in Retail.

Shri  Khandelwal said that the traders of Delhi have due regards for the Chief Minister since she has resolved many of the issues of the traders in no time but on issue of FDI in Retail, the CAIT is raising the voice of the traders continuously and has even published books on the ill effects of the FDI in Retail on farmers,traders,hawkers,small industries, transporters and other sections of the retail trade.

Mr. Khandelwal said that Delhi Governments’ announcement of implementing FDI in Retail is pre-matured because of the fact that the amendments in Rules and Regulations in Foreign Exchange Management Act (FEMA) done by the Reserve Bank of India, the copy of which has been submitted today by Attorney General of India to the Supreme Court, has to go to both the houses of the Parliament  for discussion and approval under section 48 of the FEMA Act and the Parliament and the decision of the Parliament will be final and binding. As of now the notification of Union Government on FDI in Retail is merely a piece of paper and has no legal validity.

Mr. Khandelwal further said that it is the Union Government which is creating confusion on the issue by stating incorrect figures and even the Prime Minister has also been misled. The responsible people sitting at the helm of affairs in Union Government are falsely stating that about 40% food is waste in the Country and for development of cold storage and modern transport system, FDI is needed. The figure of 40% food wastage is absolutely false and misleading because of the fact that the Indian Council of Agricultural Research (ICRA), a body under Ministry of Agriculture, in its report on post harvest losses estimated a maximum wastage of 12% in vegetables and 18% in fruits and the said report was submitted to Union Government in September, 2010. Shri Khandelwal questioned why the Union Government is misleading the nation.. It is most amusing that development of cold storage and modern transport system has not been included in the backend infrastructure as defined in the notification though in PM’s address to the nation on 21st September, it has been categorically mentioned.

He said that the CAIT is always prepared to have a dialogue on the merits and de-merits of FDI in Retail but on any public platform so that nation must know what the reality is. “We have enough authenticated material to prove that the Government is standing on a weak wicket”-said Khandelwal

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For more information please contact CAIT, Secretary General, Mr. Praveen Khandelwal @ 9891015165, 93101099771.