Myntra Breaks Silence on ED Probe: ‘No Official Complaint Received Yet, Pledges Full Cooperation’

E-commerce major Myntra has issued its first official response after coming under the Enforcement Directorate’s (ED) scanner for an alleged ₹1,654 crore violation of the Foreign Exchange Management Act (FEMA) in connection with foreign direct investment (FDI) norms in multi-brand retail. 

The company said, “At Myntra, we are deeply committed to upholding all applicable laws of the land and operating with the highest standards of compliance and integrity. As a homegrown marketplace, we are committed to contributing to India's nation-building efforts by empowering the textile and apparel ecosystem through digital commerce,” Myntra’s spokesperson added.  

“While we have not received a copy of the subject complaint and the supporting documents from the authorities, we remain fully committed to cooperating with them at any point of time,” the statement read.

The ED on Wednesday filed a formal complaint against Myntra Designs Pvt. Ltd. and its group companies, alleging violations of FEMA and FDI policy. According to the agency, Myntra is accused of conducting multi-brand retail operations under the pretense of a “wholesale cash & carry” business — a sector open to foreign investors under strict conditions, but which cannot directly sell to retail consumers. The ED claims Myntra established a related company, Vector E-Commerce Pvt. Ltd., which acted as an intermediary to bypass policy restrictions and route goods directly to customers, effectively converting wholesale business into retail sales.

A key focus of the investigation is whether Myntra violated a rule that prohibits wholesale businesses from selling more than 25% of their products to group companies. The alleged violations could potentially attract penalties up to three times the value involved, as outlined in Section 16(3) of FEMA.

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