Case Filed Against Myntra: The Enforcement Directorate (ED) has registered a case against the online shopping platform Myntra and its affiliates for violating the Foreign Exchange Management Act (FEMA). This case is related to foreign exchange violations worth about Rs 1,654 crore. This action has been taken by the Bengaluru regional office of ED, in which the company has been accused of illegal foreign investment of Rs 1,654.35 crore.
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Case Filed Against Myntra For Fraud
ED had received information that M/s Myntra Designs Pvt Ltd and its associate companies were doing multi-brand retail business in the name of wholesale cash and carry. This is against the foreign investment (FDI) policy.
Sources say that ED has also started investigating some documents and financial records of the company. It is being seen whether Myntra used foreign funds in the wrong manner or bypassed the rules.
Flipkart is the parent company of Myntra Flipkart is the parent company of Myntra. In 2014, Myntra was bought by Flipkart for Rs 2,000 crore. At the time when Flipkart bought Myntra, it had a total of 15,000 products from 1,000 brands. The structure of the company was not changed; it still works independently.
Case Filed Against Myntra: What is the FEMA Act?
FEMA monitors that no company or individual misuses foreign money, such as money laundering or tax evasion. It makes foreign investment and trade easier, but keeps it within the ambit of regulations.
FEMA outlines procedures for all foreign exchange transactions in India. Under this Act, ED is given the responsibility to investigate suspected violations of foreign exchange laws and regulations, take action against violators and impose penalties on them.
ED files case against Myntra
— TIMES NOW (@TimesNow) July 23, 2025
The ED has filed a case against Myntra for allegedly violating Foreign Direct Investment (FDI) norms.
Myntra, along with its associated entities, is accused of engaging in multi-brand retail operations under the guise of wholesale trading.
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Myntra Has 4 Crore Transacting Customers
Myntra has a strong user base. According to media reports, the company has around 4 crore transacting customers. Myntra’s revenue from operations in FY 2021-22 was Rs 3,501 crore. In FY 2023, it grew 25% year-on-year to Rs 4,375 crore.
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