July 23 (Reuters) - India's financial crime agency said

on Wednesday it had registered a case against Walmart's ( WMT )

e-commerce fashion company Myntra for allegedly receiving 16.54

billion rupees ($191.52 million) of foreign funding in violation

of the country's investment rules.

The Enforcement Directorate said that Myntra was a wholesale

retailer, but that the company sold the majority of its products

to a retailer which then sold the products on Myntra's website.

India's investment rules only allow foreign e-commerce

companies to run a marketplace to connect buyers and sellers,

and they cannot stock and sell goods to customers on their own.

Other companies including Walmart's ( WMT ) Flipkart and Amazon ( AMZN )

have often faced allegations of breaching such rules

using certain sellers - allegations the companies have denied.

Myntra did not immediately respond to a request for comment.

($1 = 86.3840 Indian rupees)