Latest news with #VectorE-CommercePvtLtd
Indian Express
6 days ago
- Business
- Indian Express
Myntra in trouble? ED issues Rs 1,654 crore FEMA notice for FDI violation
Flipkart-owned fashion e-commerce giant Myntra is facing heat from the Enforcement Directorate, India's financial crime watchdog, for violating the country's foreign investment rules. Myntra, one of India's largest fashion e-commerce brands, has received a notice from India's financial crime watchdog for allegedly violating the country's foreign investment rules. On Wednesday, July 23, the Enforcement Directorate stated that Flipkart -owned e-commerce platform Myntra received foreign investment worth Rs 1,654.35 crore by claiming to operate a 'wholesale cash and carry' business, but instead sold most of its goods to Vector E-Commerce Pvt Ltd, which then sold them to the consumers. According to the Enforcement Directorate, Vector E-Commerce Pvt Ltd and Myntra Designs Pvt Ltd belong to the same group of companies.
Time of India
7 days ago
- Business
- Time of India
ED files Fema case against Myntra over Rs 1,654 crore FDI violation; disguised multi-brand retail as wholesale, company responds
Representative image The Enforcement Directorate (ED) has filed a complaint under the Foreign Exchange Management Act (Fema), 1999 against Myntra Designs Private Limited (Myntra), its related entities, and directors for alleged FDI violations worth Rs 1,654.35 crore, the agency announced Wednesday. The action was initiated by the ED's Bengaluru Zonal Office based on credible inputs that Myntra and its related companies were engaged in Multi-Brand Retail Trade (MBRT) while posing as "Wholesale Cash & Carry" businesses, allegedly violating the prevailing Foreign Direct Investment (FDI) Policy. 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)," as reported by ANI. "That Vector E-Commerce Pvt Ltd and Myntra Designs Pvt Ltd are related parties and belong to same group or group of companies," said ED. It further added that Vector E-Commerce Pvt Ltd was established and consistently used as a corporate vehicle to split the B2C (business-to-customer) transactions into B2B (Myntra Designs Pvt Ltd to Vector E-Commerce Pvt Ltd) and subsequently B2C (Vector E-Commerce Pvt Ltd to retail customers). by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is it legal? How to get Internet without paying a subscription? Techno Mag Learn More Undo ED's investigation also revealed that Myntra Designs Pvt Ltd was 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," added the agency as quoted by ANI. According to the Enforcement Directorate (ED), Myntra Designs Pvt Ltd and others have violated the provisions of Section 6(3)(b) of the Foreign Exchange Management Act, 1999, as well as the Consolidated FDI Policies dated April 1, 2010, and October 1, 2010, involving an amount of Rs 1,654.35 crore. Myntra reacts: No official notice from ED In response to the ED action, Myntra, a unit of Walmart Inc, issued a brief statement, as reported by Reuters, "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 of time," added the company. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
India.com
7 days ago
- Business
- India.com
Bad news for Flipkart, ED files complaint against Myntra in Rs 16540000000 alleged violations of…
The Enforcement Directorate (ED) has filed a complaint under the Foreign Exchange Management Act (FEMA), 1999, against Myntra Designs Private Limited, its associated entities, and directors over alleged violations totaling Rs 1,654.35 crore, the agency announced on Wednesday. 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)
&w=3840&q=100)
Business Standard
7 days ago
- Business
- Business Standard
ED files Fema complaint against Myntra over ₹1,654 crore FDI violation
The Directorate of Enforcement (ED) on Wednesday said it has filed a complaint against Myntra Designs Private Limited (Myntra), its related companies, and their directors for contravention amounting to ₹1,654.35 crore, allegedly in violation of the extant Foreign Direct Investment (FDI) policy. The investigative agency has taken the action under Section 16(3) of the Foreign Exchange Management Act, 1999 (FEMA). The ED said that enquiries in the matter were initiated on the basis of credible information that Myntra and its related companies were engaged in multi-brand retail trade (MBRT) under the guise of wholesale cash-and-carry, allegedly in violation of the existing FDI policy. The ED investigation under the provisions of FEMA, 1999 revealed that Myntra Designs Pvt Ltd had declared it was engaged in wholesale cash-and-carry business and had invited and received FDI from foreign investors amounting to ₹1,654.35 crore. The firm sold a majority of its goods to Vector E-Commerce Pvt Ltd, which in turn sold the goods in retail to end customers. Vector E-Commerce Pvt Ltd and Myntra Designs Pvt Ltd are related parties and belong to the same group or group of companies. '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),' said the ED statement. The ED further stated that its investigation also revealed Myntra Designs Pvt Ltd was actually carrying out multi-brand retail trading in the guise of wholesale cash-and-carry. The ED also noted that Myntra Designs Pvt Ltd had not met the conditions laid down for wholesale cash-and-carry trading, as it had made 100 per cent of its sales to Vector E-Commerce Pvt Ltd. This contravenes the amendments dated 1 April 2010 and 1 October 2010, which permitted only 25 per cent of sales to companies belonging to the same group or group companies.
Time of India
7 days ago
- Business
- Time of India
ED files Fema case against Myntra for Rs 1,654 crore FDI violation
Myntra is accused of misusing the wholesale 'cash & carry' route to conduct multi-brand retail trading (MBRT), which is restricted under the FDI policy. The ED found that Myntra received foreign direct investment (FDI) claiming it was for wholesale trading, but routed the majority of sales through Vector E-Commerce Pvt Ltd, a related-party entity that sold directly to consumers. This structure was allegedly used to bypass norms by bifurcating B2B and B2C operations, while actually engaging in retail trade. As per the FDI policy amendments dated April 1, 2010, and October 1, 2010, only 25% of wholesale sales can go to group companies — a cap Myntra allegedly breached. The ED concluded that Myntra and others contravened Section 6(3)(b) of Fema, along with the consolidated FDI policies, resulting in a total contravention amounting to Rs 1,654.35 crore. The Enforcement Directorate (ED) has filed a complaint under the Foreign Exchange Management Act (Fema), 1999, against Flipkart-owned fashion etailer Myntra, and its related entities for allegedly violating foreign investment rules to the tune of Rs 1,654.35 crore.
