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Myntra is under ED scrutiny over an alleged FDI violation, with a FEMA complaint filed against the e-commerce giant
ED Slaps FEMA Case On Myntra for Flouting FDI Rules
Myntra has come under the scanner of the Enforcement Directorate (ED), which has filed a FEMA complaint against the e-commerce giant for allegedly violating Foreign Direct Investment (FDI) norms.
According to the ED, Myntra and associated entities carried out Multi-Brand Retail Trade (MBRT) operations while falsely claiming to operate as “Wholesale Cash & Carry” businesses. This alleged misrepresentation is in direct violation of the FDI policy, which restricts foreign investment in MBRT under certain conditions.
The Enforcement Directorate (ED) has alleged that Myntra violated foreign exchange rules involving a sum of ₹1,654 crore (Rs 1,654,35,08,981).
According to the ED, Myntra routed the majority of its sales through M/s. Vector E-Commerce Pvt. Ltd., a company from the same corporate group, which then sold the goods directly to end consumers.
The agency claims Vector was deliberately set up to mask what were essentially retail (B2C) transactions as wholesale (B2B) on paper, thereby bypassing FDI restrictions on multi-brand retail trading.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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