Suspended companies no longer allowed to send $10,000 abroad each year without approval
The e-Commerce Association of Bangladesh (e-CAB) has suspended the memberships of four online shops, including Evaly and Dhamaka.
According to the association, the memberships have been suspended due to non-response to complaints, unsatisfactory response, non-compliance with the Digital Commerce Management Guideline 2021, and non-payment of dues to merchants and customers.
The other shops — Sirajganj Shop and Glitters RST World — have been given 30 days to report on queries sought regarding settling customer and merchant dues, implementing digital commerce guidelines, and settling other complaints.
Failure to respond will result in the cancelation of membership of both platforms.
The decision to cancel the membership of the companies was taken at a meeting of e-CAB's executive council on Tuesday, reads a notification signed by its General Manager Jahangir Alam Shovon.
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With the suspension, the companies will lose the privilege of sending $10,000 abroad each year without approval, in addition to other benefits.
The e-commerce sector has been flooded with complaints relating to product deliveries, advance payments, fraudulent transactions, and embezzlement.
Evaly, Eorange, Dhamaka, and Sirajganjshop.com have come under fire recently, with several customers and merchants having filed cases against the online shops.
Merchants of Dhamaka say they have been supplying products to the e-commerce company since December 2020 under an agreement of getting paid within 10 working days of receiving the delivery order receipts.
However, many have yet to receive payment even though 160 days have passed since deliveries.
Dhamaka owes Tk200 crore to 650 merchants and has 100,000 pending deliveries worth Tk100 crore, according to investigating agencies.
A customer has also brought fraud charges against 11 officials of Dhamaka, including its chairman, managing director, and COO, as the company charged him for products that were never delivered.
The 11 people named in the case are Dhamaka Chairman Dr Mojtaba Ali, Vice President Ibrahim Swapan, Managing Director SMD Jasim Uddin Chishti, Deputy Managing Director Nirodh Baran Roy, CEO Sirajul Islam Rana, Assistant General Manager (Accounts) Safwan Ahmed, Chief Business Officer Devkar Dey Shuvo, Nazim Uddin Asif, 26, Deputy Manager Amirul Hossain, Asif Chishti, and System Category Head Imtiaz Hasan.
Following the complaint, Sirajul Islam Rana, the chief operating officer of e-commerce platform Dhamaka, and two others have been arrested by RAB over allegations of fraud and embezzlement.
According to a media brief by RAB, Dhamaka currently owes Tk700 crore to consumers and merchants.
Meanwhile, following the arrest of Evaly CEO Mohammad Rassel and Chairperson Shamima Nasrin, RAB revealed that the platform has liabilities worth over Tk1,000 crore.
On August 28, e-CAB formed an 11-member compliance advisory committee to take a decision on the other accused companies. The committee recommended suspension of membership of the companies.
Previously on August 18, e-CAB suspended memberships of four other e-commerce firms, including Eorange and 24tkt.
Earlier, e-CAB sent show-cause notices to 16 companies on July 18 following several allegations of misconduct.