RBI Resolves Myntra Designs FEMA Case with Compounding Order
Reserve Bank of India issues compounding order in Myntra Designs FEMA case
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The Reserve Bank of India has issued a compounding order against Myntra Designs Pvt. Ltd. for violations of the Foreign Exchange Management Act, concluding an investigation into the company's overseas investment reporting. The order was issued on April 20, 2026, following a no-objection from the Enforcement Directorate.
- 01The Reserve Bank of India issued a compounding order on April 20, 2026, resolving the case against Myntra Designs Pvt. Ltd.
- 02The investigation was related to violations of the Foreign Exchange Management Act (FEMA).
- 03Allegations included delayed filing of annual performance reports for overseas investments totaling ₹42.85 crore.
- 04Myntra Designs had overseas direct investment commitments of ₹3.03 crore that were not reported on time.
- 05The company paid ₹2.88 lakh as part of the compounding order to settle the violations.
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The Reserve Bank of India (RBI) has concluded its investigation into Myntra Designs Pvt. Ltd. by issuing a compounding order for violations of the Foreign Exchange Management Act (FEMA). This order, dated April 20, 2026, came after the Enforcement Directorate (ED) provided a 'No Objection' to Myntra's request for compounding the alleged contraventions. The case involved claims that Myntra failed to timely file annual performance reports concerning overseas investments amounting to ₹42.85 crore. Additionally, the company had overseas direct investment commitments of ₹3.03 crore that were also not reported as required. Following the ED's endorsement, the RBI issued the compounding order, allowing Myntra to settle the matter by paying ₹2.88 lakh. This resolution effectively terminates the investigation against the Walmart-owned online fashion retailer, marking a significant step in compliance with FEMA regulations.
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The resolution of this case may enhance compliance among companies regarding foreign investment regulations, potentially affecting future foreign investments in India.
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