In a stunning development, the Enforcement Directorate (ED) has launched a major probe into Myntra, the popular Flipkart-backed e-commerce platform, over alleged violations of India's foreign exchange laws amounting to a staggering ₹1,654 crore.

According to a statement issued on Wednesday, the ED has filed a case under Section 16(3) of the Foreign Exchange Management Act (FEMA). The case targets Myntra Designs Private Limited, along with its associated companies and directors, accusing them of misusing foreign direct investment (FDI) norms.

The agency alleges that Myntra engaged in multi-brand retail trading under the guise of wholesale cash-and-carry operations — a clear breach of existing FDI guidelines. The Bengaluru-based fashion giant is now at the center of a growing controversy, with federal investigators claiming they acted on “credible information” pointing to the large-scale contravention.

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The case marks a significant escalation in the government’s scrutiny of e-commerce players allegedly bending regulatory frameworks to expand operations.

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