E-commerce brand Myntra, backed by Flipkart, is under the scanner of the Enforcement Directorate (ED) after it was slapped with a FEMA case for FDI “contravention” of more than ₹1,654 crore. The ED alleged that it acted on “credible” information of Myntra and related entities allegedly carrying out multi-brand retail trade under the guise of “wholesale cash and carry”.
The central agency under the Ministry of Finance said that the complaint was filed under Section 16(3) of the Foreign Exchange Management Act, which empowers the ED to kick off a formal inquiry after a complaint is filed by an authorised government official.
According to the ED, the Bengaluru-headquartered Myntra, its linked companies, and its directors are in alleged violation of extant Foreign Direct Investment (FDI) guidelines.
“ED, Bengaluru has filed a complaint u/s 16(3) of the Foreign Exchange Management Act, 1999 (FEMA) before the Adjudicating Authority under FEMA against M/s. Myntra Designs Private Limited (Myntra) and its related companies and their Directors for contravention to the tune of ₹1654,35,08,981,” the central agency posted on X.
[This is a developing story]
