Trend e-commerce agency Myntra has settled a international change compliance case with the RBI, bringing an Enforcement Directorate (ED) investigation into the matter to a detailed.

The RBI issued a compounding order on 20 April 2026 below Part 15 of the Overseas Change Administration Act, 1999, after the ED gave its no-objection to the settlement.

The order pertains to alleged contraventions by Myntra Designs Non-public Restricted involving delayed filings and abroad investment-related commitments. The matter was settled by a one-time fee of Rs 2.88 lakh.

In line with the ED, its investigation was launched after it obtained “credible data” about alleged FEMA contraventions by the corporate.

The company mentioned the case concerned a delay in submitting Annual Efficiency Stories below Regulation 15(iii) of the Overseas Change Administration (Switch or Subject of Any Overseas Safety) Rules, 2004. The delayed filings coated Rs 42.85 crore.

It additionally concerned monetary commitments made by Abroad Direct Funding whereas APR submissions have been pending, below Regulation 6(2)(iv) of FEMA 120/RB-2004. These commitments coated Rs 3.03 crore.

Whereas the matter was below investigation, Myntra utilized to the RBI for compounding of the alleged contraventions. Compounding permits sure FEMA violations to be settled by fee of a prescribed quantity.

The ED mentioned the RBI referred the matter to it, after which the company issued its no-objection “in step with the true spirit of the Act”.

Following the ED’s no-objection, the RBI compounded the alleged contraventions by its order dated 20 April 2026. The ED investigation into these particular alleged FEMA contraventions has now been terminated.

The event seems to be separate from one other FEMA-related matter involving Myntra reported in July 2025.

Information studies citing the ED mentioned that in July 2025 the company had filed a criticism towards Myntra, its associated entities and administrators over alleged violations of India’s international direct funding coverage amounting to about Rs 1,654.35 crore.

In line with these studies, the ED alleged that Myntra carried out multi-brand retail buying and selling below the guise of a wholesale cash-and-carry enterprise mannequin, which allows 100% FDI below the automated route.

The company alleged that Myntra obtained international funding and offered most of its items to associated entity Vector E-Commerce, which then offered them to shoppers, the studies mentioned.

The ED additionally alleged, based on the studies, that Vector was used to divide transactions into business-to-business and business-to-consumer flows, permitting retail operations to be offered as wholesale commerce.

It additional alleged that Myntra breached FDI guidelines by exceeding the permitted 25% gross sales restrict to group firms, the studies mentioned.

Myntra, responding to these allegations on the time, mentioned it remained dedicated to complying with all relevant legal guidelines and would cooperate with the authorities. The corporate additionally mentioned it had not obtained a replica of the criticism or supporting paperwork from the ED.