Myntra Designs Pvt Ltd
The Reserve Bank of India (RBI) has issued a compounding order in the case of Myntra Designs Pvt Ltd under Section 15 of the Foreign Exchange Management Act, 1999 (FEMA) on April 20, 2026. After this order, the ongoing investigation against the company regarding alleged violations of FEMA has ended. This order was issued after receiving “No Objection” (NOC) from the Enforcement Directorate (ED).
On receiving credible information in this matter, ED started investigation into possible violations of FEMA, 1999. The cases in which RBI has done compounding are as follows.
1. Delay in submission of Annual Performance Report (APR)
The company was accused of not timely submitting the Annual Performance Report (APR) required under Rule 15(iii) of the FEM (Transfer or Issue of Any Foreign Security) Regulations, 2004. This case was related to approximately Rs 42.85 crore.
2. Foreign investment commitment without depositing APR
The company had made the financial commitment through Overseas Direct Investment (ODI) without filing APR. This was considered a violation of Rule 6(2)(iv) of FEMA 120/RB-2004. This case was related to about Rs 3.03 crore.
The matter reached RBI
During investigation, the company applied to RBI for compounding of these violations under Section 15 of FEMA. RBI sought opinion from ED in this regard, on which ED did not raise any objection to compounding in accordance with the spirit of the Act.
The case was settled by paying Rs 2.88 lakh
On the basis of the approval received from ED, RBI resolved these violations in its order dated April 20, 2026. For this the company had to pay a lump sum of Rs 2.88 lakh. With this order, the ongoing investigation against Myntra Designs Private Limited in this case related to FEMA violations has ended.
