Overview:
Reserve Bank of India (RBI) has issued a Compounding Order on 20th April 2026, in respect of FEMA violations by Myntra Designs Private Limited. Investigation carried out by Adjudicating Officer concluded in a Compounding Order wherein Myntra Designs Private Limited shall make a one-time payment of Rs. 2,88,000.
RBI issued compounding order for FEMA violations in case of M/s Myntra designs Private Limited.
The Reserve Bank of India (RBI) has issued a compounding order on 20.04.2026 u/s 15 of Foreign Exchange Management Act, 1999 (FEMA), in the case of M/s Myntra Designs Private Limited, which has resulted into termination of investigation against the company for alleged contraventions of the provisions of FEMA, 1999, which are mentioned below. The said order has been passed by RBI after issuance of “No Objection” by the Directorate of Enforcement (ED).
In this case, based on the credible information received, investigation was taken up by ED for following contraventions of FEMA, 1999 for which compounding has been done by RBI:-
- Delay in submitting APRs under Regulation 15(iii) of FEM (Transfer or Issue of Any Foreign Security) Regulations, 2004, covering Rs. 42.85 Crore.
- Undertaking financial commitment by way of ODI pending submission of APRS under Regulation 6(2) (iv) of FEMA 120/RB-2004, covering Rs. 3.03 Crore.
The case was under investigation while the company filed an application before the RBI for compounding of the said contraventions under FEMA as per the provisions of Section 15 of the Act. On reference from RBI, the ED issued no objection for such compounding in line with the true spirit of the Act. Accordingly, the RBI, on the basis of no objection issued by ED, has compounded the said contraventions vide compounding order dated 20.04.2026 with a one-time payment of Rs. 2, 88,000.
