ED Alleges Myntra's Massive FDI Policy Breach

• Lately, the Directorate of Enforcement filed a case against Myntra for allegedly breaching foreign investment rules.
• Myntra is accused of executing multi-brand retail under the guise of 'wholesale cash & carry' to bypass FDI restrictions.
• The Enforcement Directorate claims Myntra sold a majority of its wholesale products to its own entity, Vector Ecommerce, in violation of policies.
• Myntra insists on its compliance with Indian laws, expressing willingness to cooperate with the authorities.
• This incident coincides with Flipkart's IPO preparations and Myntra's recent fundraising activities.

Source: Inc42