Sellers body AIOVA blames Flipkart for holding merchants' payments

Continuing its tirade against Walmart-Flipkart deal, the All India Online Vendors Association (AIOVA) has now alleged that a number of merchants selling on Flipkart did not receive their scheduled payments.

According to the sellers body these sellers have been raising their concerns for a long time via social media platform especially Facebook page of Flipkart Seller Club to highlight the issue.

AIOVA which represents over 3,500 sellers also claimed that Flipkart has held back payments up to 50-75 per cent of the amount that was due to be made to vendors on Monday, reports TOI.

However, the online marketplace platform has a payment policy of 7-15 days after a product is delivered to a consumer, based on sellers’ performance grading. The association also said that the problem is being faced by all marketplace merchants.

Flipkart is yet to respond on the matter.

Since Walmart-Flipkart deal came into existence, AIOVA along with traders body and other lobby group have been raising the voice against the deal saying that it will create a monopoly in Indian e-commerce market.

Recently AIOVA and traders body CAIT have filed a petition in Competition Commission of India (CCI) to oppose the deal.

This is the second such instance of holding payments occurred in recent times. Last week sellers on another online marketplace Snapdeal have filed cases in different courts in the National Capital Region for alleged non-payment of dues.

Bengaluru-based Veepee Electronics, which sold consumer durables on Snapdeal, alleged the company to hold the payment of approximately Rs 5 crore and has filed a criminal case in a Gurugram court against the firm. Besides, Spacewood Furnishers has also slapped a case in the Delhi High Court for recovery of Rs 18 crore from Jasper Infotech, the parent company of Snapdeal.

Snapdeal, however, denied holding any such dues of sellers and said that the two particular companies making claims are not payable as per the company’s records.