Commerce ministry to ask Home for action against Evaly

The inter-ministerial committee on e-commerce formed by the commerce ministry has recommended taking legal action against controversial e-trader Evaly.

The decision came at a meeting held at the ministry on Tuesday. The commerce ministry will request home ministry to take action as per the recommendation of the committee.

Earlier, the Anti-Corruption Commission (ACC) and the home ministry were told to look into the issue of money laundering, if any, by the e-commerce platform.

“The committee has found that Evaly violated rules and the law enforcement agencies will take necessary steps,” Hafizur Rahman, head of the commerce ministry’s digital commerce cell, told the media on Tuesday.

He noted that there’s a huge difference between the company’s liabilities and assets. “It’s important where the money went and this is being looked into by the ACC and the home ministry,” he said.

Rahman argued that law enforcement apparatus will take necessary action. Besides, others companies as Evaly are likely to face music for the same reason under the Digital Security Act and the National Consumer Protection Act.

“At the moment we have only recommended action against Evaly. After receiving the report of the Bangladesh Bank, the same action will be applied to the remaining nine other rogue e-commerce platforms,” added the additional secretary to the commerce ministry.

The meeting discussed some other rogue e-traders like E-orange, Dhamaka, Sirajganj Shop, Aladdin’s Lamp, Kyukum, Boom Boom, Adian Mart, Need.com.bd and Alesha Mart – all have broken the law.

Preparations are underway to hand over the case concerning Evaly to the lawmen while the ACC and the Home Ministry have also been apprised of the e-commerce platform.

“We cannot guarantee people’s protection; however, the government will try to make sure that the customers get back their dues and products. The same is true for merchants,” explained Hafijur.

“But if Evaly siphons off money and if the money cannot be recovered, it will be difficult in that case, however, we will give priority to the interests of the customers.”

Referring to the Bangladesh Bank’s recommendation to audit e-commerce companies through audit firms, Hafizur Rahman stated that they would see if any ministry could conduct such audits in this way.

“There are some legal issues here, but we will see if we can.”

In response to a question, he said not all e-commerce organisations are registered with the Registrar of Joint Stock (RJSC) such as E-orange.

As per the company law, RJSC can register a company, but there is no provision in the law that it can close any company directly, however, it can take action according to the special section of the law.

Following the home ministry that will work on taking legal action against Evaly, the commerce ministry will also follow suit.

Moreover, work is going on in various aspects so that such problems do not arise in the coming days.

Experts say that e-commerce customers may be deprived of their money like the ones of Multi-Level Marketing companies.

Six years ago, commerce ministry closed hundreds of MLM companies. However, their customers never got their money back.

Regarding Evaly’s financial scam, commerce ministry is avoiding its responsibility by handing the matter over to the home ministry. This will force these e-commerce companies to close like the MLM companies and, again customers will never get their money back.

“Asking the home ministry to take any action means to file a lawsuit. However, nowadays matters do not progress if such action is taken. Rather, it is more important to make e-commerce repay their debts by keeping them open. Once the ministry sends its authorities to jail, Evaly will be shut,” company law expert Advocate Ahsanul Karim told The Business Post.

“Therefore, before sentencing anyone, an administrator can be appointed to keep the company running, like when banks fall into losses. Commerce ministry makes such appointment using Joint Stock Companies and Firms (RJSC) under Companies Act,” he added.

It is better to come up with a solution by taking decision of all parties of the government. It will pave a path for Evaly’s customers to get their money back, he said.

After the controversy over MLM companies, commerce ministry in October 2013 formulated the Multi-Level Marketing Activities (Control) Act.

However, later in February 2015, the commerce ministry declared MLM companies illegal, but their customers are yet to get their money back.