The government should stick to the recent clarifications released on FDI in multi-brand retail trading and not ease the conditions for foreign retailers, traders body CAIT said.

In a letter to Commerce and Industry Minister Anand Sharma, Confederation of All India Traders (CAIT) said: "the government must stick to the clarifications issued and should not bow under any pressure whatsoever..."

On June 7, the Department of Industrial Policy and Promotion had issued clarifications on queries from global retailers saying that the global players will have to put 50 per cent of their investments in back-end infrastructure, specifically for the chain they are setting up.

CAIT alleges that the global retailers are now trying to exercise lobby to dilute the conditions.

"It appears that these retailers are seeking clarification that 50 per cent back-end investment has to be applicable only for initial investment of $100 million. "If this concession is agreed to, it will totally go against the promise made by you in Parliament at the time of approving FDI in multi-brand retail," it said.

The CAIT was strongly protesting against allowing foreign direct investment in multi-brand retail trading.