India's financial crime agency said on Wednesday it had registered a case against Walmart's 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 Flipkart and Amazon 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)

(Reporting by Abinaya Vijayaraghavan. Editing by Mrigank Dhaniwala and Mark Potter)