Sellers drag Snapdeal to courts over non-payment of dues
According to reports, Gurugram-based e-commerce company Snapdeal has been dragged to courts by two of its sellers, Veepee Electronics and Spacewood Furnishers, over alleged non-payment of dues. The sellers claim that neither have they received their outstanding payment nor the goods returned by buyers. Notably, Snapdeal co-founders Kunal Bahl and Rohit Bansal are also a party in the cases.
Snapdeal failed to pay for goods sold through the platform
Bengaluru-based Veepee Electronics, which has been selling consumer durables on Snapdeal since 2015, has filed a criminal case in the Gurugram Court over non-payment of Rs. 5 crore and impending recovery of products worth Rs. 15 crore. Next, Spacewood Furnishers has filed a case in the Delhi High Court, alleging that its goods worth Rs. 18 crore are still lying with the firm.
These claims are not payable as per company records: Snapdeal
A Snapdeal spokesperson said, "One of the claims made is a pending arbitration, and the other represents an attempt by the claimant to misuse police machinery to address commercial disputes. Snapdeal will oppose the claims and defend itself in appropriate forums."
Sellers want the government to monitor the e-commerce marketplace
In 2016, e-sellers in India demanded the Ecommerce Committee formed under NITI Aayog to set up a regulatory body to monitor the e-commerce marketplace and its policies towards registered merchants. No action has been taken on that yet. According to Consumer Affairs Minister CR Chaudhary, over 50,760 complaints were filed against e-commerce companies between in FY17, up from 23,955 complaints in the prior fiscal.
Amid selling sister concerns and increasing losses
Along with failed merger talks with rival Flipkart, Snapdeal posted a 75% increase in its loss in FY17. In recent times, Snapdeal has sold its payment platform Freecharge to Axis Bank for Rs. 385 crore, its logistics and supply chain management arm Vulcan Express to Future Group for Rs. 35 crore, and its cloud-based inventory management subsidiary Unicommerce to Infibeam for Rs. 120 crore.