The Enforcement Directorate (ED) has initiated a high-profile Foreign Exchange Management Act (FEMA) case against Myntra Designs Pvt Ltd and its associated entities, alleging violations of India’s Foreign Direct Investment (FDI) policies. The total financial implication is pegged at a staggering Rs 1,654 crore.
According to a statement from the ED’s Bengaluru Zonal Office, the case stems from credible intelligence indicating that Myntra was conducting multi-brand retail trading under the guise of “Wholesale Cash & Carry” operations—an activity not permitted under the current FDI framework.
The ED alleges that this business structure was a deliberate attempt to circumvent restrictions placed on direct consumer retail, thereby violating provisions under FEMA, 1999. Directors of Myntra and related firms have also been named in the complaint, though individual liabilities and penalties are yet to be formally announced.
The investigation comes amid growing regulatory scrutiny on e-commerce platforms in India, particularly those backed by foreign investment. Authorities are increasingly focusing on complex corporate arrangements that may potentially sidestep legal boundaries concerning multi-brand retail.
