New Delhi: The Enforcement Directorate (ED) has received a complaint against online e-commerce platform Myntra and its associated entities for alleged violations of the Foreign Exchange Management Act (FEMA). The complaint points to irregularities involving foreign exchange transactions worth ₹1,654 crore, highlighting violations related to multi-brand retail trade, which is regulated under the FDI policy.
According to ED, Myntra is accused of receiving foreign investment under the pretext of wholesale trading, while actually engaging in direct retail operations with consumers, which violates FEMA rules. The investigation also revealed that retail sales were conducted through Vector E-Commerce Pvt. Ltd., an entity linked to Myntra.
The ED has found that both wholesale and retail operations were conducted simultaneously, allegedly to bypass legal restrictions. It was determined that these transactions violated Section 6(3)(B) of FEMA, resulting in foreign exchange dealings amounting to ₹1,654.35 crore.
