India, July 23 -- The directorate of enforcement (ED) has filed a complaint under the foreign exchange management act (FEMA) against Flipkart-owned Myntra and its related entities for allegedly flouting foreign investment rules to the tune of INR 1,654.4 Cr.

In a statement, the ED alleged that Myntra and its related companies were undertaking multi-brand retail trade (MBRT) in the guise of 'Wholesale Cash & Carry', which it said was in violation of India's FDI policy.

For context, wholesale cash and carry pertains to a retail model where businesses, typically smaller retailers, purchase goods directly from wholesalers and pay in cash at the time of purchase, without requiring delivery services.

The probe agency further said that Myntra...