FEMA Case Filed Against Myntra for FDI Violation

The Enforcement Directorate has initiated a FEMA case against Myntra and associated companies for allegedly violating FDI rules by engaging in multi-brand retail under the guise of wholesale operations, amounting to over Rs 1,654 crore in contraventions.

The Enforcement Directorate (ED) has filed a FEMA case against Myntra, an e-commerce platform backed by Flipkart, along with its associated companies and directors, for foreign direct investment (FDI) violations exceeding Rs 1,654 crore.

This action was taken following reports that Myntra Designs Private Limited, along with its related firms, was allegedly involved in multi-brand retail activities disguised as wholesale cash and carry operations, which contravenes existing FDI guidelines.

Headquartered in Bengaluru, Myntra now faces allegations and ongoing investigations into the intricacies of its retail practices in light of the ED's findings and subsequent legal actions.

(With inputs from agencies.)