E-commerce platform Club Factory, which was among the 59 Chinese apps that were banned in India, has allegedly stopped payments to sellers on its platforms. The move comes after the company is said to have suspended its India operations.
Seller body All India Online Vendors Association (AIOVA), which represents over 2,000 online sellers, has filed a legal notice against the Club Factory, calling the force majeure clause invoked by the latter illegal.
“Marketplaces are bound by RBI
The legal notice was sent to Club Factory’s India registered company FutureTimes Technology India Private Ltd on Thursday. AIOVA has accused the company of violating the Payment and Settlements Systems Act, 2007.
The association has asked Club Factory to settle pending dues to sellers within 48 hours and has threatened legal action for non-compliance.
AIOVA said it had received several complaints from sellers of non-payment, but did not have an estimate of the total dues owed by Club Factory.
Club Factory did not respond to CNBC-TV18’s queries.
Apart from Club Factory, some other e-commerce platforms such as Shein and Romwe have also been banned in India after the information technology ministry’s June 29 order.
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