FEMA case against Myntra closed following compounding: ED
Business 04 Jun, 2026

FEMA case against Myntra closed following compounding: ED

Business To Business, New Delhi, 4th June, 2026:  A Foreign Exchange Management Act (FEMA) investigation against Myntra Designs Private Limited has been formally terminated after the Reserve Bank of India issued a compounding order based on a "no objection" provided by the Enforcement Directorate.
Background
The ED had launched an investigation into Myntra last year following what it described as credible information suggesting possible violations of FEMA provisions.
The probe focused on alleged contraventions related to foreign exchange regulations applicable to e-commerce operations and investment structures.
RBI compounding order
According to the ED:

  • The RBI issued a compounding order on April 20.
  • The order was issued after the ED conveyed its no-objection to the settlement of the matter.
  • Following the RBI's action, the FEMA proceedings against Myntra have been terminated.
What is compounding?
Under FEMA, compounding is a mechanism that allows certain violations to be settled through a prescribed process rather than prolonged adjudication or litigation.
A compounding order generally means:
  • The alleged contravention has been resolved under the regulatory framework.
  • The concerned entity has complied with the requirements specified by the RBI.
  • The matter is closed from a FEMA enforcement perspective, subject to the terms of the order.
Significance
Myntra, which is backed by Flipkart, is one of India's largest online fashion and lifestyle retailers.
The termination of the FEMA investigation removes a regulatory overhang for the company and brings closure to the specific foreign-exchange compliance matter that had been under examination.
Neither the ED's statement nor the information provided indicates any ongoing FEMA proceedings against Myntra in relation to this case following the RBI's compounding order.

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