The Enforcement Directorate (ED) has filed a case worth Rs 1,654 crore against Myntra Designs Pvt Ltd and its related companies. The case is under the Foreign Exchange Management Act (FEMA). The agency says that Myntra broke foreign direct investment (FDI) rules.

According to a statement from the ED's Bengaluru Zonal Office, the action was taken after they received reliable information. The ED believes that Myntra and its associated companies were doing multi-brand retail trading (MBRT) while claiming to be doing "Wholesale Cash & Carry" business. But MBRT is not allowed under the current FDI policy.

The ED says that Myntra used this setup to avoid FDI restrictions on selling directly to consumers. This, according to the agency, is a violation of FEMA, 1999.

The ED has also named the directors of Myntra and its related firms in the case. However, more information about their personal responsibility or possible punishment will come as the investigation moves ahead.

This case comes at a time when many e-commerce companies in India, especially those with foreign funding, are being closely watched. Authorities believe some of them are using complex business models to bypass FDI rules.

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