The Reserve Bank of India (RBI) has issued a compounding order in the case of M/s Myntra Designs Private Limited, bringing an end to an investigation into alleged violations of the Foreign Exchange Management Act (FEMA), 1999.
According to the Enforcement Directorate (ED), the RBI passed the order on April 20, 2026 under Section 15 of FEMA after receiving a “No Objection” from the agency. As a result, the investigation against the company has been terminated.
The case was taken up by the ED after it received information about alleged FEMA violations by Myntra Designs.
The investigation related to two contraventions. The first involved a delay in submitting Annual Performance Reports (APRs) under Regulation 15(iii) of the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004. This covered an amount of Rs 42.85 crore.
The second contravention involved undertaking financial commitment through Overseas Direct Investment (ODI) while APR submissions were still pending. This was related to Regulation 6(2)(iv) of FEMA 120/RB-2004 and covered an amount of Rs 3.03 crore.
While the investigation was underway, Myntra Designs approached the RBI seeking compounding of the alleged contraventions under Section 15 of FEMA.
Following a reference from the RBI, the ED issued its no-objection for the compounding process. The RBI subsequently compounded the violations through its order dated April 20, 2026.
As part of the compounding order, the company made a one-time payment of Rs 2.88 lakh.
With the RBI’s order and the payment of the compounding amount, the investigation into the FEMA contraventions has been closed.