The Central Agency claims that the investigation is launched on the basis of credible information that myntra and its interconnected companies are carrying out a retail with multiple brands with a family of wholesale cash and transfer, allegedly contrary to existing FDI policy. | Photo Credit: A representative picture
The Directorate for recovery (ED) announced on Wednesday that they have taken the case under the Foreign Forendeery Act against the myntra Design Private Limited, companies associated with it and their directors for alleged violations of the £ 1,654 GBP.
The Central Agency claimed that the investigation was launched on the basis of credible information that myntra and its interconnected companies were carried out by a retail with multiple brands with a family of wholesale cash and transfer, allegedly contrary to existing FDI policy.
According to Ed Myntra, she said they were dealing with wholesale cash and raised business, invited and accepted funds from direct foreign investments in the melody of 1,654 Crore. The Central Agency also claimed that the myntra sold most of its goods to the Vector Electronic Trade PVT. Limited, a company that sells goods in retail to customers. Vector is a company under a group that owns myntra.
The Central Agency said that the vector was created and continued as a company entity that expands transactions for customer business (B2C) (myntra for customers) to business in business (myntra to Vector) and then B2C (Vector to Myntra). ED claimed that myntra violated the conditions set for wholesale or cash and transfer trading, which allow only 25% of sales to companies of the same groups and groups of companies.
Myntra and other companies reportedly violated the provisions under FEM, 1999 and a consolidated policy of direct foreign investment of April and October 2010, at the melody of 1,654 Crore GBP.
The spokesman of the myntra, who responded to the accusation, said they were deeply determined to observe all valid land laws and to function with the highest standards of adherence and integrity.
“We helped to bring traditional craftsmanship to the global audience, especially among Indian diasporas, closely working with Indian brands, craftsmen.
Meanwhile, in a separate case, ED said they reserved one Sigma Technologies PVT. Ltd. (Simple), under Fema and its director Nithya Nand Sharma, for alleged violations of the melody of 913.75 crore.
“Questions started on the basis of trusted information that one Sigma Technologies pvt. Ltd. (Simple) received a significant amount of direct foreign investment (FDI) from the United States, allegedly contrary to the existing FDI policy,” Ed said.
“One Sigma Technologies pvt. Ltd. operates its business through a mobile application called SIMP. It provides purchase now services that allow their customers to buy now and pay later in installments,” Ed said.
“It was found that One Sigma Technologies Pvt. Ltd. received direct foreign investment in the Melody of CRORE 648 GBP and released convertible notes on the 264 Crore melody below 100% by declaring its business activities as the benefits of information technology and other computer services,” Ed said.
The accusation is that the company has received direct foreign investments under the automatic way and has issued convertible notes under the automatic route without obtaining the prior consent of the Indian government.
Published – 23 July 2025 9:06
