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Myntra Escapes ED Probe After Forex Violations Compounded
4 Jun
Summary
- RBI closed the Enforcement Directorate investigation into Myntra.
- Company faced violations for delayed overseas investment reports.
- A one-time penalty of Rs 2.88 lakh resolved the issue.
The Reserve Bank of India has concluded its investigation into Myntra Designs Private Limited. This development comes after the RBI compounded certain violations of the Foreign Exchange Management Act (FEMA).
The Enforcement Directorate (ED) confirmed the closure of its probe on Thursday. The RBI issued a compounding order on April 20, 2026, terminating the investigation against Myntra for alleged contraventions.
The ED initiated its probe in July 2025 due to credible information about potential FEMA violations by Myntra and associated entities. These violations reportedly concerned delays in submitting Annual Performance Reports for overseas investments and issues with undertaking overseas direct investment commitments prior to necessary reporting.
The RBI compounded two specific contraventions. The first involved delayed APR submissions for transactions totaling Rs 42.85 crore, while the second related to financial commitments of Rs 3.03 crore made before APR submissions were finalized. Myntra subsequently sought compounding from the RBI, which, with the ED's no-objection, imposed a one-time penalty of Rs 2.88 lakh to resolve these matters.
