Bad news for Flipkart, ED files complaint against Myntra in Rs 16540000000 alleged violations of…
The action was initiated by ED's Bengaluru Zonal Office following credible information that Myntra Designs Private Limited (Myntra) and its related companies are doing Multi Brand Retail Trade (MBRT) in the guise of 'Wholesale Cash & Carry', allegedly in violation of the extant FDI Policy. ED's Investigation Against Myntra
ED said its investigation under the provisions of FEMA, 1999 revealed that 'Myntra Designs Pvt Ltd had declared that they were engaged in the business of 'wholesale cash & carry' and invited and received FDI from foreign investors equivalent to Rs 1654,35,08,981 and that they sold majority of their goods to Vector E-Commerce Pvt Ltd (who sold the goods in retail to the ultimate customer).'
'That Vector E-Commerce Pvt Ltd and Myntra Designs Pvt Ltd are related parties and belong to the same group or group of companies,' said the agency.
It further said that Vector E-Commerce Pvt Ltd was created and continued to be used as a corporate entity to bifurcate the B2C (business to customer i.e. Myntra Designs Pvt Ltd to retail customers) transaction into B2B (Myntra Designs Pvt Ltd to Vector E-Commerce Pvt Ltd) and then B2C (Vector E-Commerce Pvt Ltd to retail customers).
ED investigation also revealed that Myntra Designs Pvt Ltd was actually carrying out multi-brand retail trading in the guise of 'wholesale cash & carry'.
'Even otherwise, Myntra Designs Pvt Ltd have not satisfied the condition laid down for 'wholesale cash and carry trading' as they have made cent per cent sales to Vector E-Commerce Pvt Ltd which is in contravention of amendment dated April 1, 2010 and October 1, 2010 which permitted only 25 per cent sale to companies belonging to the same group or group companies.'
As per the ED, Myntra Designs Pvt Ltd and others have contravened the provisions as per section 6(3)(b) of the Foreign Exchange Management Act, 1999 and Consolidated FDI Policy dated April 1, 2010 and consolidated FDI Policy dated October 1, 2010 to the tune of Rs. 1654,35,08,981.
(With Inputs From ANI)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Print
16 minutes ago
- The Print
Malegaon blast probe politics will simmer till Maharashtra polls
A trial court in Mumbai gave its judgment on the case Thursday, acquitting all seven accused, including former Bharatiya Janata Party (BJP) MP Pragya Singh Thakur, saying there was strong suspicion, but not enough evidence to convict them. And, the most unfortunate part is that nobody seems to be interested in finding out, least of all the government. An explosive went off during the holy month of Ramadan in Maharashtra's Malegaon in 2008. Six people died. Almost a hundred others were injured. It's been 17 years, but in the eyes of the judiciary, there are still no answers as to who was responsible for the attack. The court ordered compensation of Rs 2 lakh to the families of those who died in the attack, and Rs 50,000 for the families of those injured. But it is too little, too late. The Malegaon blast case has, after all, been a victim of politics, and justice or closure has been the biggest casualty. For this reason, the Malegaon blast verdict is ThePrint's 'Newsmaker of the Week.' 'Saffron terror' politics The Malegaon case has been in the public discourse for 17 years, more for the politics surrounding it than for any significant details regarding the investigation process. The probe in the immediate aftermath of the blasts, under the Maharashtra Anti Terrorism Squad (ATS) and its former chief Hemant Karkare, had led to the arrests of a bunch of Hindutva activists, including Pragya Singh Thakur, as well as Lt Colonel Prasad Purohit, an Army officer. The accused were said to be linked to a Hindu fundamentalist group, Abhinav Bharat. India had seen a fair number of terror attacks across the country in 2008, raising questions on the efficiency of the home ministry under the United Progressive Alliance (UPA) government. The initial revelations in the Malegaon probe gave a political opportunity to the Congress to turn the narrative. The party raised red flags on terrorism allegedly sponsored by Hindutva organisations, with some senior leaders such as P Chidambaram, Digvijaya Singh, and Sushilkumar Shinde using the word 'saffron terror'. They blamed the Bharatiya Janata Party (BJP) and the Rashtriya Swayamsevak Sangh (RSS) for allegedly encouraging such fringe Hindutva groups. These strong statements had at the time sparked a debate on how the term 'saffron terror' defames the entire Hindu religion and how terror should not be seen through the lens of any religious colour. The BJP and RSS, meanwhile, slammed the Congress for allegedly trying to appease the minorities. Karkare was killed in the 2008 Mumbai attacks. His death too became politically controversial as the Union Minority Affairs Minister AR Antulay, a Congressman from Maharashtra, suggested that there could be a larger controversy behind the IPS officer's death. Thursday's verdict came as vindication for the BJP's political narrative, with party leaders blaming the Congress for allegedly casting Hindus in a bad light, asking for an apology. It was ironic. The government's law enforcement agency had lost a case. It had failed to show sufficient evidence to get a conviction, despite having 17 years, over ten of which were under a BJP-led government at the Centre. And yet, those in power were celebrating. Also read: Fauja Singh's death shows Indian roads remain a national emergency—474 lives lost every day Opposition busy trying to get script right After the verdict, several Congress leaders asked if Pragya Singh Thakur and others are now acquitted, then who was behind the blast? However, the question was blunted by their more emphatic attempts at distancing the Congress from the term 'saffron terror'. Talking about 'saffron terror' in a Hindu-majority democracy had hurt the Congress even back then. In today's scenario, where the BJP has been working with every small spiritual and religious outfit on the ground to consolidate the Hindutva voter base, the consequences could be even worse. So, one after the other, leaders of the Congress tried to make all the right noises, loudly speaking about how they had never coined the term 'saffron terror,' how terror has no religion, and how Congress condemns all acts of terror. The question that should have been the loudest of all—who committed the crime—came out barely as a whimper. The Shiv Sena (Uddhav Balasaheb Thackeray) questioned the failure of the government's law enforcement agencies with two back-to-back acquittals in terror cases—first the 2006 Mumbai train blasts and now the 2008 Malegaon blast. However, it stopped short of asking or even suggesting that the National Investigation Agency (NIA) should appeal against the trial court's decision in a higher court. After all, back in 2008, when the Shiv Sena was still undivided under Bal Thackeray's leadership and was a BJP ally, it had openly supported the Malegaon blast accused. On one occasion, party workers had even showered flower petals over the accused outside a Nashik courtroom. Last month, after the Bombay High Court tore into the Maharashtra ATS over the 2006 Mumbai train blasts probe and acquitted all 12 accused, all of whom were Muslims, the Maharashtra government promptly appealed in the Supreme Court. Now that an NIA trial court has done the same in the Malegaon blast case, neither the government nor the agency has shown any urgency in appealing to a higher court. The NIA has said it will decide whether to appeal after studying the order. The political pandemonium will continue as Maharashtra gears up for urban and rural local body polls sometime next year. For the victims and their families, any closure still seems to be a long way off. (Edited by Ratan Priya)
New Indian Express
16 minutes ago
- New Indian Express
Strict quality norms stall black gram procurement in Thanjavur despite 2,500-tonne target
THANJAVUR: Despite setting a target of procuring 2,500 tonnes of black gram under the price support scheme (PSS), regulated markets in the district didn't procure a single kilogram of the pulse crop during the stipulated 90-day period that ended on June 29. While farmers blame the 'high' quality parameters for their harvest going unsold, officials suspect the poor quality seeds the former buy led to the situation. According to officials of the agriculture and farmers' welfare department, around 12,000 hectares in the district came under black gram cultivation during the rice-fallow season that commenced in January 2025. To help farmers avoid distress sales of their crop, which they commenced harvesting in April, the Thanjavur district marketing committee had made arrangements from April 1 to procure the pulse crop at the minimum support price (MSP) of Rs 74/kg at the regulated markets functioning at Thanjavur, Kumbakonam, Papanasam and Orathanadu. During the 90-day procurement period that ended on June 29, not a single kg of black gram, however, was procured under the PSS scheme which was implemented by the state agricultural marketing and agriculture business department on behalf of the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED). When contacted the officials overseeing the regulated markets said the quality parameters fixed by the NAFED are 'very high'.
Hans India
16 minutes ago
- Hans India
Bapatla police bust pan-India cybercrime gang
Bapatla: The Bapatla district police have cracked a major cybercrime case, arresting two individuals from Rajasthan for operating fake websites that defrauded tourists and devotees across India. The accused, Paramjeet (20) and Bittu (21), both sons of Kulwant Singh from Sahasan village in Deeg district, Rajasthan, created fraudulent websites mimicking websites of popular tourism destinations and religious sites. Their primary target was Haritha Resorts in Suryalanka, operated by the Andhra Pradesh State Tourism Development Corporation. District Superintendent of Police Tushar Dudi revealed that the gang also created fake websites for renowned pilgrimage sites, including Tirumala Tirupati Devasthanam, Srisailam Devasthanam in Andhra Pradesh, and Trymbakeshwar Temple in Maharashtra, deceiving devotees seeking accommodation bookings. The investigation began following a complaint by G Ashok, Manager of Haritha Resorts Suryalanka, who reported the fake 'Harith Beach Resort Suryalanka' website. A case was registered under Crime No 110/2024 for cheating and IT Act violations. The investigation uncovered a staggering 127 complaints filed across 18 states, with the gang swindling approximately Rs 50 lakh from victims. Andhra Pradesh and Telangana reported the highest number of complaints (59), followed by Maharashtra (14) and Uttar Pradesh (12). The cybercriminals' activities included 49 fake Haritha Resorts bookings, 11 fraudulent temple accommodation scams, and 52 other online frauds involving OLX scams, fake identities, and UPI-based frauds. SP Tushar Dudi formed specialised teams, including Bapatla Rural Inspector Srinivasa Rao and District IT Core Sub-Inspector Naib Rasool, to track the suspects. The accused were arrested on July 23, 2025, in Rajasthan and brought to Guntur District Jail under tight security, on a transit warrant. SP Dudi urged citizens to avoid clicking on unknown links and verify websites before making payments. He encouraged cybercrime victims to call the helpline 1930 or file complaints at The Bapatla District Police IT Core Team and investigating officers received certificates of appreciation and cash rewards for their exemplary service in solving this pan-India cybercrime case.
