India’s financial crime agency recently announced significant findings in their investigation concerning Myntra Designs, a prominent player in Walmart’s fashion business. On July 24, 2025, the agency revealed that Myntra breached laws that explicitly prohibit foreign wholesalers from selling directly to consumers. This has sparked considerable discussion, given the evolving landscape of e-commerce in India.
This scrutiny comes at a time when e-commerce giants like Myntra, Flipkart, and Amazon are already under the microscope. Just last year, an antitrust investigation concluded that these companies were favoring specific sellers through tactics often described as “predatory pricing,” which many argue hurt smaller, local retailers. While these giants firmly rejected the allegations, the case has highlighted an ongoing tension between foreign e-commerce firms and the local marketplace, intensifying the debate over fairness in India’s retail environment.
As the dust settles on this investigation, it coincides with ongoing talks between India and the United States about a potential trade deal. The restrictions imposed on Amazon and Walmart are critical points of negotiation that have, for years, created friction between New Delhi and Washington.
Myntra, a subsidiary of Flipkart, operates its own platform for selling various fashion brands directly to consumers, yet it finds itself facing serious accusations. According to India’s Enforcement Directorate, Myntra claimed to operate as a wholesaler and obtained a hefty $192 million in foreign investment, only to then sell most of its inventory to a group entity that did retail transactions. Essentially, they argued that Myntra was pretending to be a wholesaler while effectively participating in multi-brand retail trading.
In a statement, Myntra said it has not received formal documents related to this case from the authorities but expressed its commitment to cooperating fully throughout the investigation process. The company emphasized its dedication to adhering to all relevant laws.
Meanwhile, Walmart has not yet responded to requests for comments regarding these developments. India maintains strict regulations designed to protect local retailers, preventing foreign firms engaged in wholesale from making direct sales to consumers. Such restrictions are intended to create a level playing field, ensuring that domestic businesses have a fighting chance against industry giants.
The framework for e-commerce in India is similarly restricted. Although foreign-owned entities like Myntra, Amazon, and Flipkart can operate marketplaces that connect buyers with individual sellers, they are prohibited from stocking goods or selling them directly. The Enforcement Directorate has taken steps by filing a complaint against Myntra before an adjudicating authority, though specifics remain undisclosed.
Similar allegations have been raised against Flipkart and Amazon for violations of India’s foreign investment regulations. A 2021 Reuters investigation, which examined internal Amazon documents, suggested that the company provided preferential treatment to select sellers to navigate around Indian laws—a claim that Amazon has vehemently denied.
It’s particularly interesting to note that Amazon and Flipkart remain leading forces in India’s burgeoning e-commerce market, valued at approximately $125 billion in 2024, with projections suggesting it could soar to over $345 billion by the year 2030.
Founded in 2007, Myntra quickly established its foothold in the industry and was acquired by Flipkart in 2014. Walmart further solidified its influence in the region by purchasing a controlling stake in Flipkart for $16 billion in 2018. Notably, Myntra reported impressive revenues of nearly $600 million for the fiscal year 2023-24, marking a 15% increase from the prior year.
This unfolding story serves as a crucial reminder of the regulatory tightrope that e-commerce companies must walk in India. As consumers, many of us enjoy the benefits and conveniences offered by these platforms, yet it’s important to remember the broader implications surrounding fairness, legality, and the health of local businesses. For now, the outcome of Myntra’s case could have lasting implications not just for the company itself, but for the entire landscape of e-commerce in India.
Image Source: Myntra @ YouTube
