In what has the potential to disrupt a deal that has all but concluded, an association that represents as many as 2,000 online sellers, has lodged a complaint with the Indian Corporate Affairs Ministry. In its complaints, the association has requested that any potential deal should be put on hold until and unless it is approved by at least 75 percent of sellers that are active and use the Snapdeal platform to tout their wares.
In its letter to the Tapan Ray, Secretary, Corporate Affairs Ministry, the All India Online Vendors Association (AIOVA) states that the organization has been receiving complaints from vendors scattered across the country. Most of these complaints have to do with regard to disputed payments claims with Snapdeal.
As per Factor Daily, AIOVA complained:
We would like to inform you via this email that more than 500 sellers have complained to us regarding unsettled financial matters with the current management of Snapdeal.
Apparently, the company had lodged a similar complaint earlier as well. However, it did not receive a repy towards the same.
We also believe that such marketplaces are pseudo private companies and should be treated at par with public companies as public at large is interested in these companies.
The AIOVA has also submitted a list of all the retailers who were awaiting payment to Snapdeal’s management. This was done in March however, no action as taken regarding the same even as discussions of a potential merger with Flipkart continued. This has worried sellers who are already reeling from the losses incurred when AskmeBazaar closed in August last year.
Our members are already riling with the losses faced in Askmebazaar. Now they feel they will face loss in Snapdeal under the new management.
The government can certainly raise hurdles and can even stop the deal from moving forward if it wants to. It could also change the terms of the deal a tad, assuming that Flipkart ends up having to pay off these liabilities. Meanwhile, we are trying to get in touch with Snapdeal regarding the matter and will have more information on the topic as soon as possible.
