India Targets Myntra in $200M FEMA Crackdown on E-Commerce
India files a $200M FEMA case against Myntra over retail violations. What this means for e-commerce and Walmart's investment.
Matilda
India Targets Myntra in $200M FEMA Crackdown on E-Commerce India's $200M Myntra Crackdown: What It Means for Walmart and E-Commerce in 2025 India’s crackdown on foreign-funded e-commerce platforms just got a major update. On July 23, 2025, the Enforcement Directorate (ED) filed a complaint against Myntra, Walmart’s fashion e-commerce arm in India, accusing it of violating the Foreign Exchange Management Act (FEMA). At the center of the case is an alleged $191 million scheme that disguised retail operations as wholesale trade, which goes against India’s strict foreign investment norms. This move is part of India’s ongoing effort to tighten control over how foreign-backed companies do business online and protect small domestic retailers from unfair competition. Image Credits:Sheldon Cooper / SOPA Images / LightRocket / Getty Images Myntra FEMA Crackdown: The Alleged Violations Explained According to the Enforcement Directorate, Myntra sidestepped India's foreign investment rules by channeling retail sales through a related-party intermediar…
