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        Case ID :

        Frauds Committed by E-Commerce

        December 13, 2014

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        Government have been receiving complaints regarding the frauds committed by  e-commerce companies. The number of complaints registered and number of complaints on which action has been taken during the last two years, State-wise is as under:

        SI. No.

        State

        No. of complaints registered

        No. of complaints on which action taken

        1.

        Maharashtra

        07

        07

        2.

        Karnataka

        01

        01

        3.

        Rajasthan

        01

        01

         

        Presently there is no proposal for a separate regulatory framework for e-commerce under consideration. Directorate of Enforcement conducts investigations under Foreign Exchange Management Act, 1999 (FEMA) and Prevention of Money Laundering Act, 2002 (PMLA). Such investigations are carried out as and when any credible information, including those relating to frauds committed by e-commerce companies, is received. Action under PMLA can be initiated in appropriate cases where a case of fraud by an e-commerce company is registered by some other Law Enforcement Agency. Keeping in view the increased number of online fraud/cheating cases, the Government has also initiated steps for incorporating sufficient provisions for protection of consumers of online shopping/e-commerce under Consumer protection Act, 1986.

        This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha.

        E commerce fraud regulation: investigations under FEMA and PMLA continue and consumer protection provisions are being strengthened. There is currently no separate regulatory framework for e commerce; investigations into alleged e commerce frauds are conducted by the Directorate of Enforcement under the Foreign Exchange Management Act and the Prevention of Money Laundering Act as and when credible information is received, with PMLA action possible where a fraud case is registered by another law enforcement agency. The Government has initiated steps to incorporate protections for online shoppers within the Consumer Protection Act.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                E commerce fraud regulation: investigations under FEMA and PMLA continue and consumer protection provisions are being strengthened.

                                There is currently no separate regulatory framework for e commerce; investigations into alleged e commerce frauds are conducted by the Directorate of Enforcement under the Foreign Exchange Management Act and the Prevention of Money Laundering Act as and when credible information is received, with PMLA action possible where a fraud case is registered by another law enforcement agency. The Government has initiated steps to incorporate protections for online shoppers within the Consumer Protection Act.





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                                ActsIncome Tax
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