- विज्ञापन -
The Enforcement Directorate (ED) has lodged a complaint against Myntra, alleging violations of India’s Foreign Direct Investment (FDI) regulations. The complaint accuses the e-commerce company of conducting multi-brand retail activities while falsely claiming to operate solely as a ‘Wholesale Cash & Carry’ business.
According to the ED, Myntra and its related entities engaged in Multi-Brand Retail Trade (MBRT) while misrepresenting their operations, which is a direct violation of India’s FDI rules that place strict restrictions on foreign investment in MBRT. The agency further claims that Myntra violated foreign exchange regulations involving Rs 1,654 crore.
Enforcement Directorate (ED) has filed a complaint under Foreign Exchange Management Act, 1999 (FEMA) against Myntra Designs Private Limited (Myntra) and its related companies and their Directors for contravention to the tune of Rs 1654,35,08,981: ED pic.twitter.com/KWPrGKAQWZ
— ANI (@ANI) July 23, 2025
It is alleged that the company routed most of its sales through M/s Vector E-Commerce Pvt. Ltd., part of the same corporate group. Vector then sold the products directly to consumers, disguising retail (B2C) transactions as wholesale (B2B) deals on paper. Investigators believe that Vector E-Commerce was intentionally established to bypass FDI restrictions on multi-brand retail by misclassifying consumer sales as wholesale transactions.
The ED’s complaint accuses Myntra of abusing FDI permissions meant for wholesale trade to carry out extensive retail operations, which is strictly prohibited under India’s FDI policies for multi-brand retail.
