Archive · 23 Jul 2025
ED Files FEMA Case Against Myntra for FDI Violations
The government is investigating Myntra, an online shopping company, for possibly breaking some rules about how they get money from other countries.
The government thinks Myntra pretended to be a wholesale business to get money, but was really selling things directly to customers.
This is against the rules.
They say Myntra sold almost all its products to another company in the same group, which then sold them to individual buyers.
Because Myntra did this they might have broken the rules about how much they can sell to their own related companies.
Myntra says it hasn't seen the complaint yet and will help the government.
ED filed a FEMA case against Myntra alleging ₹1,654.35 crore FDI violations.
Myntra is accused of violating FDI norms by operating as a multi-brand retailer despite claiming to be a wholesale business.
The ED claims Myntra sold goods to a related company, Vector E-Commerce, which then sold to individual customers.
This practice allegedly violated FDI policy limiting sales to group companies to 25% of the total.
Myntra, owned by Walmart Inc., stated they have not received the complaint and will cooperate.
- Who
- The Enforcement Directorate (ED) against Myntra.
- What
- ED filed a FEMA case against Myntra for alleged FDI violations.
- When
- The Enforcement Directorate (ED) has filed a complaint.
- Where
- Bengaluru, India.
- Why
- Alleged violation of Foreign Direct Investment (FDI) norms.
Enforcement Directorate's View
Myntra's Response
Violation of FDI Norms
Enforcement Directorate's View
Myntra violated FDI rules by operating as a multi-brand retailer while claiming to be a wholesale business.
Myntra's Response
Myntra's response is pending since they haven't yet received official notice.
- Company Involved
- Myntra
- Alleged Violation
- FDI norms
- Amount of Violation
- ₹1,654.35 crore
- Governing Law
- Foreign Exchange Management Act (FEMA), 1999
- Alleged Business Practice
- Operating as a multi-brand retailer despite claiming to be wholesale
- Myntra Owner
- Walmart Inc.