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- ⚖️ Major Financial Lawsuit against Walmart backed Myntra in India
⚖️ Major Financial Lawsuit against Walmart backed Myntra in India
Liam Gill
August 02, 2025
Myntra Accused of Violating Foreign Investment Laws
India’s Enforcement Directorate (ED) has filed a formal complaint against Walmart-backed Myntra, alleging the fashion e-commerce company violated the Foreign Exchange Management Act (FEMA). According to the ED, Myntra routed over $191 million through a related entity, Vector E-Commerce, to mask its retail sales as wholesale operations. Indian law restricts foreign companies from direct multi-brand retailing to protect local businesses, permitting wholesale operations only under stringent rules, including limits on sales to related entities. Myntra allegedly circumvented these restrictions by selling exclusively to Vector, thereby breaching the law. The complaint follows a pattern of increasing scrutiny of foreign e-commerce giants, such as Amazon and Flipkart.
This gold miner, with a pre-money valuation of just C$15 million, is undertaking a C$2 million Pre-IPO equity raise to restart the Gold Road mine in Arizona, USA, aiming for production in the next five weeks. Idled since November 2021 when gold was $1,650 per ounce, the mine and mill are now primed to benefit from $3,300 gold and rising silver prices. Gold Road, Arizona's only fully permitted integrated gold mill, is set to list on the TSX.V this October. Building a similar mine today would cost close to US$100 million.
Management plans to grow production to 20,000 ounces of gold per year by 2025/26, potentially yielding over US$40 million EBITDA in 2026 and a healthy dividend paid in physical gold and silver. This low valuation offers near-term re-rating potential from strong cash flow, a public listing, and significant exploration upside. Learn more.*
Enforcement, Trade Tensions, and the E-Commerce Policy Void
This action comes amid sensitive trade negotiations between India and the Trump administration, which is pressuring India to open up its $125 billion e-commerce market. At the same time, India continues to delay its long-promised e-commerce policy, leaving foreign firms operating in a gray area vulnerable to sudden enforcement. The Myntra complaint highlights the ongoing uncertainty in India’s regulatory environment, particularly for companies employing aggressive corporate structuring to gain market access. The allegations mirror those previously brought against Amazon and Flipkart, signaling that Indian regulators are tightening enforcement, especially as political leaders seek to protect domestic players while avoiding diplomatic flare-ups.
Tread Carefully in Complex Regulatory Terrain
For startup founders operating across borders, particularly in regulated or consumer-facing industries, this case is a reminder that creative legal structuring must still align with the spirit of local laws. Founders building in or expanding to India should seek local legal counsel to audit compliance strategies and avoid reliance on group entities or intercompany arrangements that could raise red flags. Stay ahead of evolving policy: monitor announcements on India’s forthcoming e-commerce guidelines and consider how regulatory risk could affect partnership or acquisition discussions with larger firms. If your startup relies on channel partnerships or exclusive distribution deals in India, now is a good time to review whether these structures comply with FEMA and FDI norms.
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