India’s Enforcement Directorate (ED) has filed a complaint against fashion ecommerce platform Myntra for violating foreign investment rules.

The agency alleges that the Walmart-owned company routed over US$191 million through related-party structures to misrepresent retail operations as wholesale trade.

Myntra is accused of violating the Foreign Exchange Management Act (FEMA) by making all sales through its related entity, Vector E-Commerce, exceeding the 25% sales limit to group companies allowed for wholesale businesses.

The ED filed the complaint under section 16(3) of FEMA, naming Myntra, its related firms, and directors.

Indian law prohibits foreign wholesale traders from selling directly to consumers to protect local retailers.

Myntra said it has not yet received the complaint but is willing to cooperate with authorities and maintain compliance.

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