CAIT Appeals To Piyush Goyal For Action Against Q-comm Platforms

The Confederation of All India Traders (CAIT), the apex body of traders, has written to Union Commerce Minister Piyush Goyal, seeking his intervention against quick-commerce companies for allegedly violating laws and regulations. In its letter, CAIT accused platforms like Blinkit (owned by Zomato), Zepto, and Swiggy Instamart of misusing foreign investments to disrupt India’s retail market. Last month, CAIT released a white paper on the issue, which has been shared with Goyal and the Chief Ministers of all states.

CAIT National President BC Bhartia alleged that these companies misuse foreign direct investment (FDI) funds to dominate suppliers, control inventory, and manipulate product pricing. He claimed their primary aim is to eliminate small neighbourhood grocery stores, creating an unfair market environment that threatens the survival of over 30 million small grocery shops nationwide.

CAIT Secretary General and Chandni Chowk MP Praveen Khandelwal also criticised these companies, accusing them of blatantly violating FDI norms and the Competition Act. He alleged that they disregard Indian laws and regulations, driving small retailers out of business. Khandelwal referenced recent remarks by Goyal, where the minister raised concerns about quick-commerce platforms and suggested integrating them with local Kirana stores. Khandelwal announced plans to lead a traders' delegation to meet Goyal soon. Additionally, CAIT is organising a two-day national seminar in Delhi on January 6-7 to discuss trade-related issues.

Bhartia highlighted that quick-commerce platforms have raised over ₹54,000 crore through FDI but have failed to invest in infrastructure or long-term assets. Instead, they allegedly use these funds to cover losses, control supply chains, and offer deep discounts through select vendors, which he termed objectionable. Bhartia further claimed that these companies set up "dark stores" for supplies, violating rules that prohibit them from establishing physical stores.

CAIT also alleged that quick-commerce companies engage in anti-competitive practices, such as exclusive deals with select vendors and withholding vendor information from consumers, which violates consumer rights and the Competition Act. Their pricing and inventory control practices, Bhartia argued, harm fair competition in the market.

The organisation warned that the unchecked growth of foreign-funded quick-commerce companies poses a serious threat to India’s small retail sector. CAIT urged the government to enforce strict monitoring of these companies through consumer protection (e-commerce) rules and e-commerce policies. It also demanded immediate action to ensure compliance with existing laws and regulations.