Non-governmental trade association, the Indian Sellers Collective has urged NR Narayan Murthy, Former Chairman, Infosys to end Cloudtail India’s partnership with Amazon. The letter accuses Murthy of sacrificing the interest and livelihoods of millions of small Indian traders by teaming up with Amazon to let Cloudtail act as a front for Amazon's retail business and defying the objectives of the policies of the Indian government.
The letter states Cloudtail India has been the largest seller on Amazon India. On paper, this arrangement does not flout India's FDI regulations, however, in reality, it is the mysterious Hober Mallow Trust that actually owns and controls Cloudtail. Additionally, the senior leadership of Cloudtail as well as majority of board members of Cloudtail are all former Amazon employees. In 2018, the government amended the laws to stop these practices of foreign retailers forming front companies to carry out retailing and Murthy promptly increased his stake to 74 per cent but changed nothing else.
Ashwani Mahajan, National Co-Convener, Swadeshi Jagaran Manch says, Amazon India, through arrangements with companies like N.R. Narayana Murthy's Cloudtail is indulging in predatory pricing and discounting thereby destroying the business of offline retailers and small sellers."
Dhairyashi H. Patil, President, All India Consumer Products Distributors Federation (AICPD),urges Murthy torise to the occasion and come clean on his alliance with Amazon India and the Hober Mallow Trusts and Catamaran.