BY THE REGISTERED POST WITH ACKNOWLEDGEMENT DUE
To,
1.
AMAZON
DEVELOPMENT CENTRE (INDIA) PRIVATE LIMITED
Through its Directors,
Mr.Srinivasa Kanagalu Shamanna,
Mr. Rakesh Mohan Bakshi,
Mr. Avinash Ramachandra
No.26/1, Brigade World Trade Centre,
10th Floor, Dr. Raj Kumar Road,
Malleshwaram (W) Bangalore 560 055
(Karnatka)
e-MAIL : kanagalu@amazon.com
2.
CLOUDTAIL INDIA PRIVATE LIMITED
Through its Directors,
Mr. Abishek Laxminarayan,
Mr. Nithyanandan Radhakrishnan
Ground Floor Rear Portion,
H-9, Block B- 1 Mohan
Cooperative Industrial Area,
Mathura Road New Delhi 110 044
Dear Sir(s),
Under
instructions from my client Ms. Neha Mishra, Aged about 26 years, D/o Mr.
Rajendra Prasad Mishra, Near Astha Estate Building, Bharhut Nagar, Near Old RTO
office, Raghuraj Nagar, Satna – 485 001 (Madhya Pradesh) Videocon : 7999716522,
e-MAIL : nehamishrasatna@gmail.com,, I, serve you with this notice as under :
1.
Amazon Development Centre (India) Private
Limited is a Private incorporated on 29 June 2004. It is classified as
Subsidiary of Foreign Company and is registered at Registrar of Companies,
Bangalore. Its authorized share capital is Rs. 500,000 and its paid up capital
is Rs. 118,990.It is involved in Software publishing, consultancy and supply
[Software publishing includes production, supply and documentation of
ready-made (non-customized) software, operating systems software, business
& other applications software, computer games software for all platforms.
Consultancy includes providing the best solution in the form of custom software
after analyzing the user’s needs and problems. Custom software also includes
made-to-order software based on orders from specific users. Also, included are
writing of software of any kind following directives of the users; software
maintenance, web-page design]. Amazon Development Centre (India) Private
Limited's Annual General Meeting (AGM) was last held on 30 September 2016 and
as per records from Ministry of Corporate Affairs (MCA), its balance sheet was
last filed on 31 March 2016.
2.
Directors of Amazon Development Centre
(India) Private Limited are Srinivasa Kanagalu Shamanna, Rakesh Mohan Bakshi,
Avinash Ramachandra, . Amazon Development Centre (India) Private Limited's
Corporate Identification Number is (CIN) U72200KA2004FTC034233 and its
registration number is 34233.Its Email address is kanagalu@amazon.com and its
registered address is No.26/1, Brigade World Trade Centre, 10th Floor, Dr. Raj
Kumar Road, Malleshwaram (W) BANGALORE Bangalore KARNATKA 560 055, INDIA.
Current status of Amazon Development Centre (India) Private Limited is -
Active.
CLOUDTAIL
INDIA PRIVATE LIMITED
3.
Cloudtail India Private Limited is a Private
incorporated on 04 October 2011. It is classified as Non-govt company and is
registered at Registrar of Companies, Delhi. Its authorized share capital is
Rs. 5,000,000,000 and its paid up capital is Rs. 5,000,000,000.It is involved
in Other wholesale [Includes specialized wholesale not covered in any one of
the previous categories and wholesale in a variety of goods without any
particular specialization.] Cloudtail India Private Limited's Annual General
Meeting (AGM) was last held on 21 November 2016 and as per records from
Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 31
March 2016.
4.
Directors of Cloudtail India Private Limited
are Abishek Laxminarayan, Nithyanandan Radhakrishnan,. Cloudtail India Private
Limited's Corporate Identification Number is (CIN) U51909DL2011PTC225840 and
its registration number is 225840.Its Email address is CSlegal@cloudtail.in and
its registered address is Ground Floor Rear Portion, H-9, Block B- 1 Mohan
Cooperative Industrial Area, Mathura Road New Delhi South Delhi DL 110044.
Current status of Cloudtail India Private Limited is - Active.
Unfair
Trade Practice
5.
Cloudtail India Pvt. Ltd, a joint venture
between Amazon.com Inc. and N.R. Narayana Murthy’s Catamaran Ventures, has
become the biggest seller or merchant on Amazon India’s platform, underlining
how the world’s largest online retailer has used loopholes in the law to deploy
a mix of the marketplace and the direct-selling business model in India.
Cloudtail is now the key growth driver for Amazon India, generating at least
40% of the company’s sales in some months, three people familiar with the
matter said. Cloudtail is particularly dominant in electronics and fashion
sales, two of the three largest categories for Amazon India (promoted by Amazon
Seller Services Pvt. Ltd).
6.
Since it launched as a seller on Amazon in
July 2014, Cloudtail has expanded aggressively. Its capital was increased
to Rs.500 crore last month from just Rs.500,000 last July, according
to documents available with the Registrar of Companies (RoC). The equity
capital has been pumped in jointly by Amazon Asia and Catamaran through an
entity called Prione Business Services Pvt. Ltd. Apart from the Rs.500
crore in equity capital, Cloudtail has access to secured loans totalling Rs.300
crore, RoC documents show.
7.
As India bans foreign direct investment
(FDI) in online retail, Amazon and Flipkart, the country’s biggest e-commerce
firm, operate as marketplace platforms that connect small merchants with
buyers. Amazon and Flipkart aren’t allowed to sell directly to shoppers.
India’s industry department is yet to define the term marketplace and also
elaborate on just what constitutes retail and wholesale trading on such
platforms. Many traditional retailers allege that most online marketplaces are
actually involved in the retail business. Marketplaces are defined as websites
that connect buyers to sellers, offering services such as warehousing,
logistics, and payments. This falls under the definition of so-called B2B or
business-to-business e-commerce. India allows foreign investments in firms
engaged in this business, but not in retail firms.
8.
Like Amazon, others have tried to get around
this problem too. Flipkart India, for instance, has devised a complicated maze
of many inter-connected and some purportedly independent entities. WS Retail is
one of the most important entities in this structure. To get around FDI rules,
Flipkart created WS Retail in 2009 as a seller on its site. As part of a
complex arrangement, WS Retail bought goods from Flipkart India Pvt. Ltd, the
B2B (business-to-business) arm of the main group holding company, and sold the
same goods to customers on Flipkart’s site. WS Retail also owned and ran
Flipkart’s key logistics business called e-kart that delivered products to
customers.
9.
WS Retail was owned by Flipkart co-founders
Sachin Bansal and Binny Bansal, both of whom were also on its board, until
September 2012. The Bansals were forced to sell their stake in WS Retail to
former OnMobile Global Ltd chief operating officer Rajeev Kuchhal just weeks
before Indian regulatory agencies launched an investigation into Flipkart’s
business relationship with WS Retail. After the stake sale, the Bansals
resigned from WS Retail’s board, but two of Flipkart’s early employees, Sujeet
Kumar and Tapas Rudrapatna, both of whom are considered to be close to the
Flipkart founders, controlled roughly 46% of WS Retail. Kumar was the de facto
head of WS Retail and ran the logistics business until he left the company
earlier this year. Flipkart has since bought back the logistics arm, as
reported by Mint on 22 September.
10.
In Amazon’s case, the company prefers to
deploy a mix of marketplace and direct sales in most of its international
markets because this allows the company to expand sales rapidly as well as
maintain consistency in customer experience. To achieve this preferred mix of
market place and direct sales, Amazon set up Cloudtail as a seller on its
platform with the help of Catamaran Ventures, the family office of Infosys Ltd
co-founder Murthy.
Cloudtail
brings significant benefits to Amazon India.
11.
After Cloudtail’s aggressive expansion,
Amazon India is no longer solely dependent on other third-party sellers to
drive sales. The e-commerce giant has stopped giving guaranteed returns to some
sellers on the inventory they commit to Amazon, the people cited above said.
For other sellers, too, Amazon has reduced the amount of guarantee it gives on
their goods, the people said. These measures have helped Amazon save tens of
crores of rupees. Earlier, Amazon promised a monthly return of 1-3% on the
value of goods sent by some sellers to its warehouses. This helped Amazon
obtain significant product commitments from sellers even before customers
placed orders. The easy availability of inventory then helped the company
deliver goods faster than rivals and differentiate itself in a market where it
is desperate to succeed.
12.
The timing of Cloudtail’s launch as well as
its frenetic expansion are also partly connected to the tax troubles faced by
Amazon in Karnataka. In July-August last year, tax authorities in that state
cancelled the licences of many of the third-party merchants that worked with
Amazon India, bringing the company’s operations to a near halt in the state,
one of the largest markets in the country. The tax dispute, which revolves
around whether Amazon or its sellers should pay sales tax, is still unresolved.
13.
Among other things, the dispute showed
Amazon the degree to which it was reliant on third-party sellers. With
Cloudtail’s expansion, that dependence is much lower. Amazon India country head
Amit Agarwal and finance director Raghava Rao joined Cloudtail’s board of
directors last July. The money that Amazon Asia is pumping into Cloudtail is
separate from the thousands of crores of rupees received by Amazon Seller
Services, the wholly-owned Indian unit of Amazon. In July 2014, Amazon.com
Inc’s chief executive officer Jeff Bezos promised to pump in as much as $2
billion into the company’s India business over time, as it seeks to become the
dominant e-commerce firm in the country.
Deficiency
in Service
14.
This is to bring to your kind notice that my
client had purchased 1 HP 15-be016TU 15.6-inch Laptop (6th Generation) from
your online shopping procedure for a consideration of Rs. 27,490.00 paid in
cash vide your cash Invoice Number: BOM4-914352, Invoice Date: 15.09.2017. The
said goods are suffering from the following defects :
On
opening the Courier box it was found empty, it carries no laptop.
15.
My client had reported the above matter to you
several times through customer care phone number so also e-mail but despite all
her pleadings you noticees have not made good the deficiency in service which
is indeed regrettable and highly unfussiness like. On account of your aforesaid
dereliction of duty and failure and neglect to rectify the same I have
suffered. Losses/incurred expenses to the tune of Rs.1,00,000/, which you are
liable to compensate to me.
16.
You noticees are hereby finally called upon
to return the price/ charges paid and pay compensation for financial loss/
injury/ interest suffered due to your negligence in the sum of Rs.1,00,000/-
with interest@12% per annum within 30 days of the receipt of this notice
failing which my client shall be constrained
to initiate against you noticees for redressal of my aforesaid grievances and
recovery of the aforesaid amount such proceedings both civil and criminal as
are warranted by law, besides filing a complaint under the statutory provisions
of The Consumer Protection Act, 1986 exclusively at your own risk, cost,
responsibility and consequences which please note.
Cost of this reply notice is Rs. 5,000/- to be paid by you noticee
No. 1 to my client.
A Copy of this legal notice is being kept in my office for future
action.
Please take notice and act accordingly and fail not.
Thanking you
PLACE : JABALPUR Yours faithfully
DATED : 25.09.2017 [VIJAY RAGHAV
SINGH]
ADVOCATE
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