Interest of small traders should not be affected by FDI in retail: SC
The Supreme Court has asked the government to regulate measures to protect the interest of the small traders after it allowed 49 percent FDI in retail sector.
New Delhi: Is FDI in retail a "political gimmick", the Supreme Court on Tuesday asked the Government while seeking its response on how it intends to safeguard the interest of small traders after opening up the retail sector to foreign direct investments (FDI).
The apex court said that interest of small traders should not be affected by FDI in retail sector.
The apex court said that there is apprehension in the mind of small traders that their business would be affected with the coming of multinational companies in retail sector which needs to be allayed by the government by putting some regulatory mechanism.
A bench headed by Justice R M Lodha and S J Mukhopadhaya asked the Centre to file its response on these aspects within three weeks and also queried whether some foreign investment has come in the country after opening of retail sector or it was just a "political gimmick".
"What checks are there to ensure that free trade is not affected, particularly the interest of small traders," the bench said while hearing a public interest litigation (PIL) filed by an advocate questioning Centre's policy of opening retail sector for foreign direct investment.
"Apprehension is there in the mind of people that small traders' interest would be affected. How do you intend to allay the fear. Some regulatory mechanism has to be there," the bench said.
Favouring regulatory framework to protect small traders, the bench said that the big companies can bring price of commodity down through unfair trade practises forcing small traders to shut their shops and the companies thereafter can increase the price and monopolise the market.
"Has the policy brought some investment in the country or is it just a political gimmick. Has the policy brought some fruits?," the bench asked the government.