Bangalore: With The All India Online Vendors Association (AIOVA) alleging Snapdeal of not clearing outstanding, the e-marketplace operator woes doesn’t seem to get over soon.
Snapdeal though dismissed the seller’s claim terming it false. It issued a media statement on Thursday which said that the company has a robust grievance redressal mechanism and that “no amounts are outstanding towards sellers. The company said that payments to sellers are made 6-10 times per month and typically sellers receive their payments within 3-5 days of the sale of their goods and that there are no outstanding amounts in this regard.”
AIOVA said that Snapdeal has hidden the fact that the seller helpline number was terminated without any intimation in March.
“Snapdeal has not responded to the representative post the meeting and all issues still remain pending. We have also highlighted all issues to Honorable Minister of State for Commerce and Industry Madam Nirmala Sitharaman who had assured publicly to personally look into the issue. However, her office is now laying hands off the issue,” said AIOVA.
Sanjay Agarwal, Senior Vice President, Finance Operations, Snapdeal, said, “In these cases, sellers have so far failed to provide required justification for their claims despite multiple attempts by Snapdeal to facilitate these settlements. These are minor amounts, which will get paid basis information provided by sellers and in accordance with the contracts and seller policies.”
Agarwal further added, “Over the last many months, we have further reinforced the internal audit and control processes to detect fraudulent practices by the sellers and impose suitable penalties and deductions towards such exceptions. Legal action has been taken against nearly 35 sellers, including initiation of criminal proceedings where required.”
Condemning Agarwal’s statements, the association said, “This highlights the stepmotherly attitude of Snapdeal towards its sellers’ woes and the intimidation power that they are showing against small sellers. We have also raised intimidation issue with the commerce ministry in the past.”
According to AIOVA, Snapdeal’s disaster is the result of operational mismanagement and failed leadership by CEO, Kunal Bahl.