As the talks of a potential merger between Snapdeal and Flipkart progress, All India Online Vendors Association (AIOVA) has reached out to ministry of corporate affairs and ministry of commerce to seek the clearance of their long pending dues. AIOVA is an association of over 2000 sellers who sell their products on various eCommerce platforms. The association has also threatened to reach court if their dues are not cleared.
In an email sent to MCA secretary Tapan Ray and commerce minister Nirmala Sitharaman on Monday, over 500 vendors seeked help. According to the mail, snapdeal has not issued pending dues for over 6 months and amid the sale talks, the status of their dues remain unclear.
One of the spokesperson of AIOVA told ET that the association wants a stay on the sale till the dues are cleared. He further stated that many of them have stopped selling with Snapdeal, however, over 500 of the vendors still have uncleared dues and there is no communication over the release of funds. He gave example of another eCommerce company AskmeBaazar, which had shut down last year without paying dues of the sellers.