ED files complaint against Myntra, related companies over Rs 1,654 crore FEMA violation

BENGALURU: The Directorate of Enforcement (ED), Bengaluru, has filed a complaint against fashion etailer Myntra and its related entities under the Foreign Exchange Management Act (FEMA), 1999, for allegedly violating foreign investment rules to the tune of Rs 1,654.35 crore under the guise of wholesale trading.

The complaint has been filed under Section 16(3) of the FEMA. In an official release on Wednesday, the ED stated that the inquiry in the matter was initiated on the basis of “credible information that Myntra Designs Private Limited (Myntra) and its related companies are doing Multi Brand Retail Trade (MBRT) in the guise of ‘Wholesale Cash & Carry’, allegedly in violation of the extant Foreign Direct Investment (FDI) policy.”