Overview

• The ED’s Bengaluru Zonal Office lodged its complaint under section 16(3) of FEMA, alleging that Myntra secured ₹1,654.35 crore in foreign investment by falsely claiming its multibrand retail operations were wholesale cash-and-carry.
• Investigators found that Myntra sold all its stock to group affiliate Vector E-Commerce, which then retailed the goods, breaching the 2010 FDI policy cap of 25% on sales to related companies.
• The complaint has been filed with the FEMA Adjudicating Authority, where potential penalties include fines of up to three times the value involved.
• Myntra says it has not yet received the ED’s formal complaint documents and has pledged full cooperation with the adjudication process.
• The case underscores heightened ED scrutiny of foreign-backed e-commerce platforms that use complex corporate structures to circumvent FDI rules.