Bengaluru, July 23 -- The Enforcement Directorate has initiated a Rs.1,654 crore case under the Foreign Exchange Management Act (FEMA) against Myntra Designs Pvt Ltd and its affiliated entities for allegedly breaching foreign direct investment (FDI) regulations, media reports said.

The ED claims this structure allowed the companies to sidestep restrictions on direct-to-consumer retail, thereby violating provisions of FEMA, 1999.

The agency has also named directors of Myntra and its associated firms in the case.

Specifics regarding their individual roles or any prospective penalties are likely to emerge as the investigation proceeds.

The development comes amid growing regulatory scrutiny of foreign-funded e-commerce players in India, m...