January 19, 2022

Delhi High Court Seeks Response From Center On Registration Of E Commerce Business As A Company – Delhi High Court Seeks Answer From Center On Regulation Of Registration As A Company Of E-commerce Business


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The Delhi High Court has sought a response from the Center on a petition challenging a provision of the Consumer Protection (E-Commerce) Rules. Under this provision, it is mandatory for a unit selling goods and services online to register as a company in India.

A bench of Chief Justice DN Patel and Justice Prateek Jalan issued notice to the Ministry of Consumer Affairs on the plea of ​​a person who created online content on Monday, asking to clarify his stand in the matter. Petitioner Dhruv Sethi stated that this rule makes registration as a company mandatory for sole proprietorship business.

In such a situation, e-commerce business cannot be done without registration as a company. Senior advocates Anand Grover and Samyak Gangwal, appearing for Sethi, told the court that due to this rule, every business which is not a company will be excluded from the e-commerce sector. Or they will have to sell their products through forums like Amazon or Flipkart.

During the hearing, the bench suggested that the petitioner may sell its products and services by listing on Amazon. To this, the advocates said that in doing so, it would have to pay to Amazon, which does not have to do the sale of products through itself.

The Delhi High Court has sought a response from the Center on a petition challenging a provision of the Consumer Protection (E-Commerce) Rules. Under this provision, it is mandatory for a unit selling goods and services online to register as a company in India.

A bench of Chief Justice DN Patel and Justice Prateek Jalan issued notice to the Ministry of Consumer Affairs on the plea of ​​a person who created online content on Monday, asking to clarify his stand in the matter. Petitioner Dhruv Sethi stated that this rule makes registration as a company mandatory for sole proprietorship business.

In such a situation, e-commerce business cannot be done without registration as a company. Senior advocates Anand Grover and Samyak Gangwal, appearing for Sethi, told the court that due to this rule, every business which is not a company will be excluded from the e-commerce sector. Or they will have to sell their products through forums like Amazon or Flipkart. During the hearing, the bench suggested that the petitioner may sell its products and services by listing on Amazon. To this, the advocates said that in doing so, it would have to pay to Amazon, which does not have to do the sale of products through itself.


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