Latest news with #NithyaNandSharma
New Indian Express
6 days ago
- Business
- New Indian Express
Enforcement Directorate books Myntra, One Sigma for FEMA violation
BENGALURU: The Directorate of Enforcement (ED), Bengaluru, has filed a complaint against fashion etailer Myntra, and its related entities under the Foreign Exchange Management Act (FEMA), 1999, for allegedly violating foreign investment rules to the tune of Rs 1654,35,08,981 (Rs 1,654.35 crore) under the guise of wholesale trading. The complaint was filed under Section 16(3) of FEMA. In another case, ED filed a complaint under Section 16(3) of FEMA against Bengaluru-based 'One Sigma Technologies Pvt Ltd' (SIMPL) and its director Nithya Nand Sharma, for contravention to the tune of Rs 913,75,88,062 (Rs 913.75 crore). The company is behind the popular Buy Now Pay Later (SIMPL) app, which allows customers to buy now and pay later in instalments. In an official release on Wednesday, the ED stated that inquiry into Myntra's books was initiated on the basis of '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 Foreign Direct Investment (FDI) policy'. The ED investigation revealed that Myntra had 'declared that they were engaged in the business of wholesale cash & carry and invited and received FDI from foreign investors equivalent to Rs 1,654.35 crore, and that they sold a majority of their goods to Vector E-Commerce Pvt Ltd (which sold the goods in retail to the ultimate customer). Vector E-Commerce and Myntra are related parties and belong to the same group or group of companies'. 'Vector was created and continued to be used as a corporate entity to bifurcate the B2C (business to customer i.e Myntra to retail customers) transaction into B2B (Myntra to Vector) and then B2C (Vector to retail customers),' the ED added.
Time of India
6 days ago
- Business
- Time of India
ED issues 914cr show-cause notice to SIMPL
Enforcement Directorate NEW DELHI: The ED's Bengaluru unit on Wednesday issued a show-cause notice of Rs 914 crore to One Sigma Technologies Pvt Ltd and its director Nithya Nand Sharma for violating Foreign Exchange Management Act to receive Rs 649 crore in FDI from the US without govt's approval. The company operates through its mobile app called SIMPL and offers "Buy Now Pay Later" services to users of various online shopping and travel platforms. "...One Sigma Technologies received FDI of Rs 648.88 crore and issued convertible notes of Rs 264.88 crore under 100% automatic route by declaring its business as 'benefits of information technology and other computer service' activity," the agency said.
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Business Standard
6 days ago
- Business
- Business Standard
ED files plaint against fintech firm SIMPL for FDI policy violation
The Enforcement Directorate (ED) on Wednesday filed a complaint against One Sigma Technologies Pvt Ltd (SIMPL) and its Director Nithya Nand Sharma for allegedly violating India's foreign exchange laws to the tune of ₹913.7 crore. The enquiries in the matter were initiated on the basis of credible information that SIMPL has received a substantial amount of Foreign Direct Investment (FDI) from the United States, the ED said in a statement. ED investigation under the provisions of Foreign Exchange Management Act (FEMA), 1999 revealed that the company runs its business through a mobile application named SIMPL. 'It provides buy now pay later services which allow its customer to buy now and pay later in instalments. Further, it was learnt that One Sigma Technologies Pvt Ltd received FDI to the tune of ₹648.87 crore and issued convertible notes to the tune of ₹264.88 crore under 100 per cent automatic route by declaring its business activity as Benefits of Information Technology and other computer service activities,' the ED said. ED also pointed out that during its course of investigation, the business model and revenue generation model of One Sigma Technologies Pvt Ltd were examined and the same revealed that the company was into conducting business, which falls under financial activity. However, according to AP (DIR Series) Circular No 8 dated October 20, 2016 issued by Reserve Bank of India (RBI), FDI in financial activities not regulated by any authority is to be brought under 100 per cent approval route. The ED further noted that SIMPL has received FDI under automatic route and issued convertible notes under automatic route without obtaining prior approval from the Government of India, the statement added.
The Hindu
6 days ago
- Business
- The Hindu
Myntra, SIMPL under ED scanner for suspected FEMA breaches totalling ₹2,567 crore
The Directorate of Enforcement (ED) on Wednesday (July 23, 2025) announced that they had taken up a case under the Foreign Exchange Management Act (FEMA) against Myntra Design Private Limited, companies linked to it, and their directors for alleged contravention to the tune of ₹ 1,654 crore. The central agency claimed that the investigations were initiated based on credible information that Myntra and its linked companies were doing multi-brand retail trade in the guise of wholesale cash and carry, allegedly in violation of the extant FDI policy. According to the ED, Myntra had declared that they engaged in wholesale cash and carry business, inviting and receiving funds from FDI to the tune of ₹ 1,654 crore. The ED alleged that Myntra sold majority of their goods to Vector E-commerce Pvt. Limited, a company that sold goods in retail to the customers. Vector is a company under the group that also owns Myntra. The Central Agency said that Vector was created and continued as a corporate entity to bifurcate Business to Customer (B2C) transactions (Myntra to customers) into Business to Business (Myntra to Vector) and then B2C (Vector to Myntra). ED alleged that Myntra has violated conditions laid for wholesale or cash and carry trading, which permit only 25% of sales to companies of the same groups and group companies. Myntra and other companies have allegedly contravened the provisions as per FEMA, 1999, and the consolidated FDI policy dated April and October 2010, to the tune of ₹1,654 crore. Reacting to the allegations, a Myntra spokesperson said that they are deeply committed to upholding all applicable laws of the land and operating with the highest standards of compliance and integrity. 'By working closely with Indian brands and sellers, artisans, and weavers, we have helped bring traditional craftsmanship to a global audience, particularly among the Indian diasporas. In doing so, we've strengthened the industry's digital backbone and created large-scale employment and entrepreneurship opportunities across the country. While we have not received a copy of the subject complaint and the supporting documents from the authorities, we remain fully committed to cooperating with them at any point in time,' the spokesperson said. Meanwhile, in a separate case, the ED said that they booked One Sigma Technologies Pvt. Ltd. (SIMPL), under FEMA and its director, Nithya Nand Sharma, for alleged contravention to the tune of ₹ 913.75 crore. 'The enquiries were initiated on the basis of credible information that One Sigma Technologies Pvt. Ltd. (SIMPL) has received a substantial amount of Foreign Direct Investment (FDI) from the United States of America, allegedly in violation of the extant FDI Policy,' the ED said. 'One Sigma Technologies Pvt. Ltd. runs its business through a mobile application named SIMPL. It provides Buy Now Pay Later services, which allow its customers to buy now and pay later in instalments,' ED said. 'It was learnt that One Sigma Technologies Pvt. Ltd. received FDI to the tune of ₹648 crore and issued convertible notes to the tune of ₹ 264 crore under the 100% automatic route by declaring its business activity as 'benefits of information technology and other computer service activities,' said the ED. The allegations are that the company received FDI under the automatic route and issued convertible notes under the automatic route without obtaining prior approval from the Government of India.
Time of India
6 days ago
- Business
- Time of India
ED files case against credit payment app company for FDI 'violation'
Academy Empower your mind, elevate your skills The Enforcement Directorate on Wednesday said it has registered a foreign exchange violation case against a Bengaluru-based company that offers credit payment service through a mobile app named Simpl for alleged contravention of foreign direct investment (FDI) rules to the tune of more than Rs 913 case pertains to the company named One Sigma Technologies Pvt. Ltd. and its director Nithya Nand Sharma. The company runs its business through its app that provides 'Buy Now Pay Later' services, including a facility for its customers to pay in installments."The company received FDI under automatic route and issued convertible notes under automatic route without obtaining prior approval from the Government of India and thereby contravened the provisions of the Foreign Exchange Management Act (FEMA) collectively to the tune of Rs 913,75,88,062 and rendered itself liable to be proceeded under FEMA," the federal probe agency said in a ED said a probe was initiated against the company on the basis of "credible" information that it received a "substantial" amount of foreign direct investment (FDI) from the US, allegedly in violation of the was learnt, the agency said, that One Sigma Technologies received FDI to the tune of Rs 648,87,76,480 and issued Convertible Notes of Rs 264,88,11,582 under 100 per cent automatic route by declaring its business activity as 'Benefits of Information Technology and other computer service activities'.An analysis of the business model and revenue generation model of the company found that it was into business that falls under the category of financial as per a circular issued by RBI, FDI in financial activities not regulated by any authority is to be brought under 100 per cent approval route, it activities where government approval is necessary for receiving FDI, any startup company can issue convertible notes only with the approval of the Central One Sigma Technologies has issued convertible notes "without obtaining" any approval from the government, the ED said.
