Myntra Faces ED Probe for ₹1,654 Cr FDI Violation

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  • Last Updated on 26 July, 2025

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ED FEMA case Myntra

The Allegations

The Enforcement Directorate (ED) has initiated FEMA proceedings against Myntra Designs Pvt Ltd and its directors for allegedly violating FDI rules worth ₹1,654 crore. The agency claims Myntra misrepresented its wholesale business model to receive foreign investment while allegedly conducting retail operations through a related entity, Vector E-Commerce.

Myntra’s Stance

The e-commerce giant has denied receiving any formal complaint but has assured full cooperation with authorities. The company maintains it complies with all FDI regulations.

Regulatory Context

India permits 100% FDI in wholesale e-commerce but prohibits foreign-funded marketplaces from direct retail sales. This case follows the scrutiny of other e-commerce players for potential circumvention of the FDI rule.

Potential Impact

If proven guilty, Myntra could face substantial penalties. The case highlights the increasing regulatory oversight of India’s e-commerce sector and may prompt stricter enforcement of FDI compliance.

Next Steps

The ED is expected to investigate financial transactions and question company executives, while Myntra will likely present its defence. The outcome could influence future FDI interpretations for digital marketplaces.

Click Here To Read The Full Press Release 

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied