The Enforcement Directorate (ED) has launched a probe against Myntra Designs Private Limited and its related companies for allegedly violating the Foreign Exchange Management Act (FEMA) rules to the tune of INR 1,654 crore. The investigation revealed that Myntra misused the "Wholesale Cash & Carry" model to bypass foreign direct investment (FDI) regulations, engaging in multi-brand retail trade under the guise of wholesale operations. Myntra reportedly sold most goods to its related entity, Vector E-Commerce Pvt Ltd, which then retailed them to customers, effectively splitting direct-to-consumer sales to evade rules. The ED complaint states Myntra failed to meet conditions permitting only 25% sales to group companies, exceeding limits by making 100% sales to Vector. This has led to allegations of contravention of FEMA Section 6(3)(b) and violations of consolidated FDI policies from 2010. The probe follows credible information and aims to ensure compliance with India’s FDI laws. The case is now before the adjudicating authority for further action. Myntra and Reliance-Owned Ajio Ban Turkish Brands Amid Rising Boycott Turkey Calls Over Support to Pakistan Following ‘Operation Sindoor’.

ED Probes Myntra in INR 1,654 Crore FEMA Case

ED Files FEMA Case Against Myntra

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