Shares of Coffee Day Enterprises remained in focus after the company issued a clarification to stock exchanges regarding recent media reports on relief granted by the Karnataka High Court in a Foreign Exchange Management Act (FEMA) matter.
In a regulatory filing dated January 22, 2026, the company confirmed that it has received a notice from the Enforcement Directorate (ED) in connection with a Foreign Direct Investment (FDI) transaction undertaken in 2010. The notice relates to alleged contraventions under the provisions of FEMA, 1999, and related rules applicable at that time.
The company stated that after reviewing the matter and based on legal advice indicating compliance with applicable laws, it has challenged the ED notice before the Karnataka High Court. According to the disclosure, the High Court, on January 21, 2026, deferred the ED’s proceedings under FEMA until the next date of hearing, which is scheduled for February 23, 2026. The company is currently awaiting a certified copy of the court order, which has also been disclosed to the exchanges.
Coffee Day Enterprises clarified that the matter is sub judice and is being actively contested. It further stated that, at this stage, there is no impact on its financials, operations, or other business activities. The company also denied having any undisclosed information that could explain recent trading activity in its shares.
