New Delhi, Jul 23 (PTI) The Enforcement Directorate on Wednesday said it has registered a FEMA case against Flipkart-backed e-commerce platform Myntra, linked companies and directors for FDI "contravention" of over Rs 1,654 crore.

The complaint has been filed under Section 16(3) of the Foreign Exchange Management Act after the federal agency received "credible information" that Myntra Designs Private Limited, whose brand name is Myntra, and its related companies are doing multi-brand retail trade in the guise of "wholesale cash and carry".

This is in alleged violation of extant Foreign Direct Investment (FDI) guidelines, the Enforcement Directorate (ED) said.

The case has been registered against the Bengaluru-headquartered Myntra, its linked companies and its directors. PTI NES DIV DIV

FDI contravention allegations prompt FEMA probe into alleged multi brand retail disguised as wholesale cash and carry trading. A FEMA case was registered under Section 16(3) alleging FDI contravention after information that the company and related entities conducted multi brand retail while representing operations as wholesale cash and carry; the registration names the company, linked entities and directors and frames the matter as non compliance with FDI guidelines subject to statutory FEMA enforcement.