The Reserve Bank of India (RBI) has compounded certain alleged violations of the Foreign Exchange Management Act, 1999 (FEMA) by Myntra Designs Private Ltd., bringing an end to an investigation by the Directorate of Enforcement (ED) into the matter.
According to the ED, the RBI issued a compounding order on April 20, 2026, under Section 15 of FEMA after the agency granted a no-objection certificate, leading to the closure of proceedings against the company.
As per the official statement, the case stemmed from an ED investigation initiated on the basis of what the agency described as credible information regarding alleged contraventions of FEMA provisions by Myntra.
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The violations that have been compounded by the RBI include delays in submitting Annual Performance Reports (APRs) under Regulation 15(iii) of the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004, involving an amount of Rs 42.85 crore.
The second violation related to undertaking financial commitments through Overseas Direct Investment (ODI) while APR submissions were pending, under Regulation 6(2)(iv) of FEMA 120/RB-2004. The transaction involved Rs 3.03 crore.
While the investigation was underway, Myntra approached the RBI seeking compounding of the alleged violations under Section 15 of FEMA. Following a reference from the central bank, the ED issued a no-objection in what it said was in line with the spirit of the Act.
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Subsequently, the RBI compounded the contraventions through its order dated April 20, 2026, upon payment of a one-time compounding amount of Rs 2.88 lakh, the ED said.
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