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Govt Assures To Resolve AskMe Payment Issue On Priority Basis

Corporate Affairs Ministry has assured Commerce Minister Nirmala Sitharaman of taking up the pending payment issue of cash-strapped e-commerce firm on priority basis, ET Tech reported.

Representatives of All India Online Vendors Association (AIOVA) recently met Commerce Minister Nirmala Sitharaman on the issue of pending payment from askmebazaar.com. Since the issue raised by AIOVA pertained to Ministry of Corporate affairs, Sitharaman has sought intervention of Corporate Affairs Secretary to resolve the matter.

“Corporate Affairs (Secretary) assured Sitharaman that he shall take up the issues raised by AIOVA on a priority basis,” the commerce and industry ministry said in a tweet.

Hit by a cash crunch, e-commerce company AskMe has decided to shut shop, leaving 4,000 staffers jobless. Last week, the National Company Law Tribunal had stopped Getit Infoservices from shutting down its ecommerce websites – AskMe Bazaar, AskMe Grocery and Mebelkart.

Also Read: AskMe Suspends Business; Lays off Employees Without Pay

The tribunal also ordered a status quo on the constitution of the company’s board of directors and said it will not hold a board meeting till the next hearing on October 17.

The dispute arose earlier this year when Astro Entertainment said it wants to dilute its stake in Getit, which has been facing financial difficulties, as “there is little prospect for turnaround and business is insolvent”.

But the minority shareholders in the company said Astro has not cleared dues worth Rs 300 crore and wants to exit the company. They also said Getit has not paid salaries to employees, vendors and sellers on the three ecommerce platforms.

Astro, however, said it has always been a responsible investor in Getit and “will continue to act responsibly and in accordance with Indian laws”.

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