ED closes FEMA case against Flipkart-owned Myntra after RBI compounding order
Enforcement Directorate has shut its FEMA probe into Myntra after RBI's April 20 compounding order. The Flipkart-owned fashion e-tailer paid Rs 2.88 lakh to settle Rs 45.88 crore in alleged FDI contraventions, drawn from a wider Rs 1,654 crore investigation into multi-brand retail FDI routing.
What happened
ED has closed its FEMA investigation against Flipkart-owned Myntra after RBI issued a compounding order on April 20, with the e-tailer paying Rs 2.88 lakh to
Key facts
- Rs 1,654 crore alleged FDI violation
- Rs 45.88 crore contraventions
- Rs 2.88 lakh compounding payment
- April 20 RBI order
Why this matters
The compounding-then-closure playbook is now a validated template for cleaning up legacy FDI structuring issues in target diligence, materially de-risking acquisitions of Indian e-commerce assets with historical multi-brand retail routing questions.