ED Registers FEMA Case
The Enforcement Directorate (ED) has launched a case under the Foreign Exchange Management Act (FEMA) against Flipkart-owned online fashion retailer Myntra. The case pertains to alleged violations of foreign direct investment (FDI) rules, amounting to ₹1,654 crore.
Complaint Origin and Allegations
The ED asserted that it acted on a complaint received by its Bengaluru Zonal Office. The complaint was filed under Section 16(3) of FEMA. The agency informed that Myntra Designs Private Limited and its group entities have been suspected of multi-brand retail trading. They were operating on a 'wholesale cash and carry' model to evade FDI norms. The model, in the opinion of the ED, violates FEMA regulations and FDI policy.
Myntra’s Response
A Myntra spokesperson said the company follows Indian laws and maintains high standards of compliance. The company also stated that it has not yet received any specific details from the authorities.
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