The first meeting of a high-powered committee formed to recommend an e-commerce policy is going to be held tomorrow at the commerce ministry.

The committee will also make recommendations on the formulation of a draft e-commerce law and formation of an e-commerce authority, said Hafizur Rahman, additional secretary to the commerce ministry.

The ministry formed the 16-member committee on September 27 to rein in fraudulence by e-commerce firms against the backdrop of an alarming rise in complaints from consumers and merchants.

Comprising senior officials of different ministries and government agencies and leaders of some private sector trade bodies, the committee is scheduled to hold at least one meeting every month.

The commerce ministry has already identified 10 e-commerce companies involved in swindling hundreds of crores of taka.

So far, the home affairs ministry has initiated legal steps against owners of Evaly based on recommendations of the commerce ministry.

"The fate of nine other errant e-commerce companies is dependent on the investigation reports of Bangladesh Bank," said Rahman, who is also the chief of the recently formed Central Digital Commerce Cell under the commerce ministry.

"Apart from the BB investigation, we from the commerce ministry have also been making inquiries with owners, senior officials and other persons concerned of nine errant e-commerce companies to know more about them," Rahman told The Daily Star over the phone.

He said the ministry found some serious acts of fraudulence by the errant e-commerce companies and in some cases, victims' money was stuck in the payment gateway.

Moreover, Bangladesh Competition Commission and the Directorate of National Consumer Rights Protection have also been conducting investigations against the errant e-commerce companies as allegations have been raised against them, he said.

"We are not taking any legal actions against the errant e-commerce companies now although the commerce ministry is finding some big loopholes. We are waiting for the investigation reports of Bangladesh Bank," Rahman said.

The central bank's investigation report is expected to be provided to the commerce ministry by the end of this month, he said.

The commerce ministry has recently been working closely with other ministries and departments of the government to identify and recommend punishments for the errant e-commerce businesses.

Legally the commerce ministry cannot conduct audits on any private company but if the law allows, the ministry will initiate third party audits, said a national committee on e-commerce companies recently.

Last month the BB suggested that the commerce ministry appoint such auditors for the errant e-commerce companies.

It also said cases should be filed by merchants and customers who fell victim.

The Bangladesh Bank report found a big gap in the liability and assets of Evaly.

It said Evaly cheated customers by taking payments in advance and not delivering goods afterwards.

The commerce ministry last month said shutting down any company may not be the best option as many e-commerce companies have been performing fine and there have been no complaints against them following the formulation of a standard operating procedure (SOP) in July this year.

But if there is any violation of the SOP, there is no legal guarantee over the protection of the interests of customers as the SOP is only a guideline for the operation of e-commerce businesses.

One year ago the commerce ministry conducted a preliminary investigation and sent letters to seven organisations including Anti-Corruption Commission (ACC), the Directorate of National Consumer Rights Protection, Bangladesh Competition Commission, Bangladesh Bank and the Ministry of Home Affairs asking to take steps against some errant e-commerce companies.

The commerce ministry has already asked the ACC and home affairs ministry to investigate whether any money laundering took place through some e-commerce companies.

The ACC and home affairs ministry is currently running an investigation on Evaly in this regard.