Myntra Under Investigation: Alleged FDI Policy Breach
Myntra, a Flipkart-backed e-commerce platform, is facing a FEMA case by India's Enforcement Directorate for alleged FDI policy violations amounting to over Rs 1,654 crore. The case claims Myntra contravened existing FDI rules by engaging in multi-brand retail under the guise of wholesale trading.
- Country:
- India
India's Enforcement Directorate (ED) has initiated a case against Myntra, the popular fashion and lifestyle e-commerce platform, and its associated entities over alleged foreign direct investment (FDI) violations exceeding Rs 1,654 crore. The ED claims Myntra has breached current FDI guidelines by misrepresenting multi-brand retail activities as 'wholesale cash and carry'.
Investigations revealed Myntra Designs Pvt. Ltd. declared as a wholesale entity and accepted substantial FDI while its majority sales went to Vector E-Commerce Pvt. Ltd., a related group company, allegedly in contravention of FDI policy amendments. The ED contends that this setup amounted to a manipulation of B2B and B2C transactions to bypass FDI regulations.
Myntra, part of Flipkart and owned by Walmart, affirms compliance with Indian laws and is cooperating with authorities. As a significant player in India's e-commerce sector, Myntra aims to uphold its commitment to supporting India's digital commerce landscape, empowering local producers and artisans.
(With inputs from agencies.)
- READ MORE ON:
- Myntra
- ED
- FEMA
- FDI
- e-commerce
- Flipkart
- violation
- foreign investment
- wholesale
- error
ALSO READ
FATF Warns of E-Commerce Misuse in Global Terror Financing
International Criminal Court Targets Taliban Leaders for Women Rights Violations
Uttarakhand's Stricter Land Laws Crack Down on Violations
FSSAI Cracks Down on E-commerce: Stern Warning for Compliance
TTD AEO Suspended Over Religious Norm Violation
Google News