The Enforcement Directorate has accused Myntra, a Flipkart-backed company, of breaking foreign investment rules by pretending to be a "wholesale" business while actually doing "retail" sales. They say Myntra improperly received over Rs 1,654 crore in foreign funds, and a case has been filed under FEMA
-1753263513773_d.png "ED files Rs 1,654 crore FEMA case against Myntra over alleged FDI violations")
File Photo.
The Enforcement Directorate on Wednesday said it has registered a FEMA case against Flipkart-backed e-commerce platform Myntra, linked companies and directors for FDI "contravention" of over Rs 1,654 crore.
The complaint has been filed under Section 16(3) of the Foreign Exchange Management Act after the federal agency received "credible information" that Myntra Designs Private Limited, whose brand name is Myntra, and its related companies are doing multi-brand retail trade in the guise of "wholesale cash and carry".
This is in alleged violation of extant Foreign Direct Investment (FDI) guidelines, the Enforcement Directorate (ED) said.
The case has been registered against the Bengaluru-headquartered Myntra, its linked companies and its directors.
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