Archive · 23 Jul 2025
ED Files Complaint Against Myntra for Alleged FDI Violations
The Enforcement Directorate (ED) has accused Myntra of breaking rules about foreign investment.
Myntra received a large sum of money from foreign investors by claiming to be a wholesaler, which has different rules than selling directly to customers.
The ED found Myntra was selling most of its goods to another company within the same group, which then sold them to individual shoppers.
This is against the rules that say wholesalers can only sell a small part of their goods to other companies in the same group.
The ED says Myntra broke these rules and has filed a complaint.
ED filed a FEMA complaint against Myntra for allegedly violating FDI rules.
The alleged FDI violations amount to Rs 1,654.35 crore.
Myntra is accused of disguising retail sales as wholesale transactions.
The ED investigation revealed Myntra sold goods to Vector E-Commerce, a related company, which then sold directly to retail customers.
The ED alleges Myntra violated FDI rules introduced in 2010, allowing only 25% sales to group companies.
- Who
- The Enforcement Directorate (ED) filed the complaint against Myntra Designs Private Limited, its related companies, and their directors.
- What
- ED filed a complaint against Myntra for alleged violations under the Foreign Exchange Management Act (FEMA), 1999, related to foreign direct investment.
- When
- The complaint was filed on Wednesday.
- Where
- Bengaluru Zonal Office of the ED.
- Why
- The ED alleges that Myntra violated India’s Foreign Direct Investment (FDI) policy by disguising retail sales as wholesale transactions to bypass FDI rules.
Enforcement Directorate's Findings
Myntra's Potential Defense
Nature of Transaction
Enforcement Directorate's Findings
Myntra allegedly violated FDI regulations by disguising retail sales as wholesale.
Myntra's Potential Defense
N/A
- Accused
- Myntra Designs Private Limited, related companies, and directors
- Complaint Filed By
- Enforcement Directorate (ED)
- Alleged Violation
- Foreign Exchange Management Act (FEMA), 1999
- Violation Amount
- Rs 1,654.35 crore
- FDI Rules Violated
- 2010 rules limiting wholesale sales to group companies to 25%
- Action Taken
- Complaint filed under Section 16(3) of FEMA, 1999