Fashion ecommerce company Myntra has settled a Foreign Exchange Management Act (FEMA) violations case with the Reserve Bank of India (RBI) by paying a compounding fee of ₹2.88 lakh, ending an Enforcement Directorate (ED) investigation. The RBI issued the compounding order on April 20, 2026, under Section 15 of FEMA, following the ED's no-objection to the settlement, according to inc42.com.
The ED initiated the probe after receiving credible information about Myntra's delays in filing Annual Performance Reports (APRs) for overseas investments totaling ₹42.85 crore and undertaking Overseas Direct Investment (ODI)-related financial commitments worth ₹3.03 crore despite pending APR submissions. During the investigation, Myntra approached the RBI to compound the contraventions. The ED granted its no-objection based on the RBI's reference, allowing Myntra to resolve the matter through a one-time payment, inc42.com reported.
Compounding under FEMA allows entities to voluntarily settle specific violations by paying a prescribed penalty, which helps reduce litigation and supports the government's ease-of-doing-business initiative. The ED has increasingly encouraged this approach to resolve cases efficiently. Myntra's settlement follows similar moves by other companies to close FEMA-related investigations without prolonged legal proceedings, reflecting a broader trend in regulatory enforcement, according to inc42.com.
With the compounding order issued on April 20, 2026, the FEMA proceedings against Myntra have been formally closed, and the ED investigation terminated, marking a conclusive end to the case, inc42.com stated.