Bengaluru: Coffee Day Enterprises on Thursday said the Karnataka High Court has deferred proceedings initiated by the Enforcement Directorate (ED) under the Foreign Exchange Management Act (FEMA) in connection with a foreign direct investment (FDI) transaction undertaken by the company in 2010.
In a regulatory filing, the operator of Café Coffee Day said it had received a notice from the ED alleging contraventions of FEMA and related rules applicable at the relevant time. After reviewing the matter and taking legal advice, the company challenged the notice before the High Court, asserting that it had acted in compliance with applicable laws.
The High Court, in its hearing on January 21, 2026, deferred the ED’s proceedings until the next date of hearing scheduled for February 23, 2026. Coffee Day said it is awaiting the formal copy of the court order.
“The matter is currently sub judice and the company is contesting the same,” the filing said, adding that at this stage there is no impact on its financials, operations or other business activities.
Coffee Day Enterprises also said it will keep stock exchanges informed of any material developments as and when required, in line with disclosure norms.
The interim relief comes at a time when companies facing legacy regulatory and enforcement issues have increasingly sought judicial intervention to seek clarity and protection against coercive action while disputes are adjudicated.