A group of Indian sellers on Thursday sent a legal notice to now-banned Chinese fashion, beauty and lifestyle e-commerce retailer Club Factory in India for suspending all payment settlements till the ban on the platform continues in the country.
The sellers sent the notice through All India Online Vendors Association (AIOVA), an online sellers’ association.
Chanakya Basa, AIOVA’s legal counsel, said that the association has asked Club Factory to clear the dues within 48 hours, failing which, they will initiate legal proceedings.
“That your defence to continue this illegal act further by invoking force majeure…is contrary to RBI circular dated 17.3.2020 and Payments and Settlement Systems Act, 2009,” said the legal notice, further adding, “Therefore, you are hereby called upon by my clients to settle the pending dues to the sellers within 48 hours.”
Owing to fast-increasing tensions with China, Indian Government recently banned 59 Chinese apps including Club Factory in the country. Following this, the e-tailer temporarily suspended its operations in India and put sellers’ payments on hold despite orders being delivered to customers.
Club Factory told its Indian sellers that it will settle the dues only after the ban is lifted. There are nearly 30,000 registered Indian sellers on the shopping app.