Click to play videoNew Delhi: Indian retail outlets are dealing with problems. Reliance for instance, faces closure in UP. But in Bangalore, there is a German company that's raking in money by selling products to consumers directly, much against FDI norms.
Commodities in the wholesale outlet are supposed to be for only retailers, wholesalers and business owners.
One needs to have a membership card to be able to purchase which is given only after verifying VAT registration number and photo Id. "Metro Cash & carry' was allowed to open on these conditions.
But it functions more like a hypermarket or a mall. Customers can be seen lining up to buy groceries, clothes and other utilities, and not necessarily in bulk. Goods such as mobile phones are sold in single pieces as well.
“My brother is a member. All family members go with him and shop, “says a customer.
Some retailers in Bangalore had filed a case against Metro in 2003 for selling directly to consumers.
In an inquiry, the state government had found these allegations to be true and informed the union finance ministry in 2004.
But no action was taken. When asked about licence violations, the company denied the charges. It added if there were violations, it was because all transactions cannot be monitored.
Metro Head Corporate Communications Manish Bhargav said, “Our teams verify the applicant's business and only then issue cards. It is difficult for us to police every purchase.”
And what about evident situations like customers trying clothes and shoes.
“They could be waiters in a restaurant looking for uniforms,” Manish added.
TV18 reporter decided to investigate further. On a membership card specifically for readymade garments, he purchased Dove, one bottle of Shampoo, a tube of fairness cream items that weren't even remotely related to our supposed business. It is evident Metro is functioning like a retailer.
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