The Enforcement Directorate filed charges Wednesday against Myntra Designs Private Limited and associated entities for Foreign Exchange Management Act breaches. Officials from the Bengaluru office accused the fashion retailer of violating foreign investment regulations worth Rs 1,654.35 crore. Directors face allegations alongside their companies for illegal business practices. Investigators discovered that Myntra received substantial foreign funding by claiming wholesale operations. The agency found evidence of multi-brand retail activities disguised as permitted wholesale trading.
Myntra channeled merchandise through Vector E-Commerce Private Limited before reaching consumers. Both firms operate under identical ownership structures according to enforcement findings. This arrangement allegedly circumvented investment restrictions by creating artificial business transactions. Regulations permit only twenty-five percent of wholesale sales to affiliated entities. Vector purchased one hundred percent of Myntra merchandise despite shared corporate control. The complaint references Section 16(3) violations under FEMA statutes and consolidated policy breaches totaling the complete investment amount.
Myntra channeled merchandise through Vector E-Commerce Private Limited before reaching consumers. Both firms operate under identical ownership structures according to enforcement findings. This arrangement allegedly circumvented investment restrictions by creating artificial business transactions. Regulations permit only twenty-five percent of wholesale sales to affiliated entities. Vector purchased one hundred percent of Myntra merchandise despite shared corporate control. The complaint references Section 16(3) violations under FEMA statutes and consolidated policy breaches totaling the complete investment amount.
