ED says the RBI accepted a Rs 2.88 lakh compounding payment and closed a foreign exchange compliance case involving alleged contraventions worth Rs 45.88 crore.
The Enforcement Directorate (ED) said a foreign exchange compliance investigation against Flipkart-owned fashion ecommerce platform Myntra has been closed after the Reserve Bank of India (RBI) issued a compounding order under the Foreign Exchange Management Act (Fema).
The RBI issued the order on 20 April 2026 in the case of Myntra Designs Private Limited after receiving a no-objection from the ED, the agency said in a statement.
The ED had initiated an investigation in July 2025 based on what it described as credible information regarding alleged violations of Fema. At the time, the agency registered a case against Myntra, its associated entities and directors over alleged foreign direct investment (FDI) irregularities exceeding Rs 1,654 crore.
“The RBI has issued a compounding order on 20.04.2026 under section 15 of Fema, in the case of Myntra Designs Private Limited, which has resulted into termination of investigation against the company for alleged contraventions of the provisions of Fema, 1999…,” the agency said.
Probe Closed
A compounding order allows an entity to settle specified regulatory contraventions through payment of a prescribed amount instead of facing further proceedings.
According to the ED, the investigation that remained under examination involved two alleged Fema contraventions covering transactions worth Rs 45.88 crore. Myntra made a one-time payment of Rs 2.88 lakh as part of the compounding process.
The agency said it has been encouraging the use of Fema’s compounding provisions since last year as part of the government’s ease-of-doing-business efforts and to reduce litigation.
“The case was under investigation while the company filed an application before the RBI for compounding the said contraventions under Fema as per the provisions of section 15 of the Act.
“On reference from RBI, the ED issued no objection for such compounding in line with the true spirit of the Act,” the federal agency said.
Based on the no-objection certificate issued by the ED, the RBI compounded the contraventions through its order dated 20 April and accepted the one-time payment of Rs 2.88 lakh.
Nature Of Violations
The two alleged contraventions related to delays in filing Annual Performance Reports (APRs) under Regulation 15(iii) of the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004, involving Rs 42.85 crore.
The second pertained to a financial commitment made through overseas direct investment (ODI) before the submission of APRs under Regulation 6(2)(iv) of Fema 120/RB-2004, involving Rs 3.03 crore.
Myntra, founded in 2007 and headquartered in Bengaluru, operates as part of the Flipkart Group, which is owned by Walmart. The closure of the case marks the end of the Fema investigation into the company following the RBI’s compounding order.
(With input from agnecy)
