The Reserve Bank of India (RBI) has compounded alleged violations of the Foreign Exchange Management Act (FEMA) by fashion e-commerce company Myntra Designs Private Limited, bringing an Enforcement Directorate (ED) investigation against the company to an end.
The ED said it had launched the probe based on credible information about two alleged FEMA contraventions. One related to delays in filing Annual Performance Reports (APRs) in respect of overseas investments worth ₹42.85 crore. The other concerned overseas financial commitments of ₹3.03 crore were undertaken while APR submissions were pending.
While the investigation was underway, Myntra approached the RBI seeking compounding of the alleged contraventions under Section 15 of FEMA. Following a reference from the central bank, the ED issued a no-objection for the proposed compounding.
Acting on the ED's clearance, the RBI passed a compounding order on April 20, 2026. The company was required to make a one-time payment of ₹2.88 lakh. This resulted in termination of the investigation against Myntra.