ED files ₹1,654 cr FEMA case against Myntra for alleged FDI violations
Bengaluru: The Enforcement Directorate has initiated a ₹1,654 crore case under the Foreign Exchange Management Act (FEMA) against Myntra Designs Pvt Ltd and its affiliated entities for allegedly breaching foreign direct investment (FDI) regulations, media reports said.
In a statement issued by its Bengaluru Zonal Office, the agency said it had received credible information that Myntra and related companies were engaging in multi-brand retail trading (MBRT) while operating under the guise of “Wholesale Cash & Carry” business—an activity prohibited under India’s current FDI policy, according to an India Today report.
The ED claims this structure allowed the companies to sidestep restrictions on direct-to-consumer retail, thereby violating provisions of FEMA, 1999.
The agency has also named directors of Myntra and its associated firms in the case.
Specifics regarding their individual roles or any prospective penalties are likely to emerge as the investigation proceeds.
The development comes amid growing regulatory scrutiny of foreign-funded e-commerce players in India, many of whom are under the scanner for allegedly using intricate corporate structures to circumvent FDI restrictions.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
