Coffee Day Enterprises Limited, a leading player in the Indian café and retail segment, has received a notice from the Enforcement Directorate (ED) relating to a Foreign Direct Investment (FDI) transaction undertaken by the company in 2010. The notice pertains to alleged violations under the Foreign Exchange Management Act (FEMA), 1999, and the associated rules and regulations applicable at the relevant time.

Following receipt of the ED notice, Coffee Day Enterprises examined the matter thoroughly. After being advised that the company has acted in compliance with applicable laws and regulations, it decided to challenge the notice before the Hon’ble High Court of Karnataka. On 21 January 2026, the Karnataka High Court deferred the proceedings initiated by the ED under FEMA to the next date of hearing, scheduled for 23 February 2026. The company is awaiting the official order copy from the court.

The management emphasized that the matter is currently sub judice and the company is actively contesting the notice. At this stage, the ED notice does not have any impact on the company’s financials, operations, or other business activities. The company reaffirmed its commitment to comply with all applicable laws and regulations and will continue to keep investors and stock exchanges informed of any material developments.

Coffee Day Enterprises operates under strict regulatory compliance norms and maintains transparency in all corporate disclosures, including those mandated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice and subsequent legal proceedings are part of the regulatory framework in India to ensure proper adherence to FDI and FEMA regulations.

The company’s Company Secretary & Compliance Officer, Sadananda Poojary, confirmed the status and assured stakeholders that the business will continue to operate normally, with no interruption to its services or financial performance. Coffee Day’s shares, listed on NSE (Symbol: COFFEEDAY) and BSE (Scrip Code: 539436), remain unaffected by this legal matter at this stage.

This development highlights the vigilance of Indian regulatory authorities and underscores the importance of corporate compliance in foreign investment transactions. Coffee Day Enterprises’ proactive approach in challenging the notice reflects its commitment to legal recourse and corporate governance.

In conclusion, Coffee Day Enterprises is actively contesting the ED notice on the 2010 FDI transaction in the Karnataka High Court, with proceedings deferred till 23 February 2026. The company confirms no immediate impact on its financials or operations and will provide updates to investors and stock exchanges as required under regulatory norms.

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