Myntra under ED scanner for alleged Rs 1,654 crore FDI violations

The ED alleges that Myntra violated foreign exchange rules involving Rs 1,654 crore.

The Enforcement Directorate (ED) has filed a complaint against Myntra for allegedly violating India’s Foreign Direct Investment (FDI) rules, accusing the e-commerce platform of engaging in multi-brand retail operations under the guise of wholesale trading.

According to the ED, Myntra and its associated entities carried out Multi-Brand Retail Trade (MBRT) activities while falsely claiming to operate as 'Wholesale Cash & Carry' businesses. Such misrepresentation, the agency says, directly violates India’s FDI policy, which imposes strict conditions on foreign investment in MBRT.

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

Story continues below Advertisement

Remove Ad

— ANI (@ANI) July 23, 2025

The ED alleges that Myntra violated foreign exchange rules involving Rs 1,654 crore.

The agency claims that the company routed the bulk of its sales through M/s Vector E-Commerce Pvt. Ltd., an entity within the same corporate group. Vector then sold the goods directly to end consumers, effectively masking retail (B2C) transactions as wholesale (B2B) dealings on paper.

Investigators allege that Vector E-Commerce was deliberately set up to bypass FDI restrictions on multi-brand retail by presenting consumer sales as wholesale trade.

The ED’s complaint accuses Myntra of misusing FDI permissions intended for wholesale trading to conduct large-scale retail operations, a practice strictly prohibited under India’s FDI norms for multi-brand retail.

Myntra spokesperson responded to the complaint, saying, "At Myntra, we are deeply committed to upholding all applicable laws of the land and operating with the highest standards of compliance and integrity. As a homegrown marketplace, we are committed to contributing to India's nation-building efforts by empowering the textile and apparel ecosystem through digital commerce. By working closely with Indian brands and sellers, artisans, and weavers, we have helped bring traditional craftsmanship to a global audience, particularly among the Indian diaspora."

"In doing so, we’ve strengthened the industry’s digital backbone and created large-scale employment and entrepreneurship opportunities across the country. While we have not received a copy of the subject complaint and the supporting documents from the authorities, we remain fully committed to cooperating with them at any point of time," the e-commerce platform's spokesperson added.