Last week, Café Coffee Day, the chain’s owner, was admitted to corporate insolvency. According to reports cited by Economic Times, IndusInd Bank petitioned the National Company Law Tribunal (NCLT), putting the coffee business in danger of insolvency.
The bankruptcy court’s Bengaluru Bench accepted the corporation for corporate insolvency. According to Maulik Vyas and Sangita Mehta of ET, the tribunal accepted the firm following the failure of the discussions between Café Coffee Day and the IndusInd bank.
However, Mint was unable to independently verify the Café Coffee Day operator’s bankruptcy filing. The Coffee Day Group has not released any public statements as of yet.
Skanda Legal and Tatva Legal are the two solicitors for the application and respondent, respectively, according to the formal ruling made public by NCLT.
The capital markets regulator SEBI assessed the corporation a fine of Rs. 26 crore in January 2023. The penalty was levied because money from subsidiaries was diverted to a business connected to the promoters. In its 43-page judgment, Sebi determined that monies worth 3,535 crore were diverted from 7 subsidiaries of Coffee Day Enterprises Ltd. (CDEL) to Mysore Amalgamated Coffee Estates Ltd., a company connected to CDEL’s proprietors.
Café Coffee Day, Tanglin Retail Reality Developments, Tanglin Developments, Giri Vidhyuth (India) Ltd., Coffee Day Hotels and Resorts, Coffee Day Trading, and Coffee Day Econ are only a few of the company’s seven subsidiaries.
Through Café Coffee Day Global Limited, the Coffee Day group was established in 1993. Its operations cover a variety of facets of the coffee industry, from bean sourcing to processing to roasting. More than 200 Indian cities are home to the company’s cafés. The portfolio of Coffee Day Global also comprises Logistics, Investments, Financial Services, Technology Parks and SEZs, and Hospitality.
In 2008, the business was established as a partnership entity under the Indian Partnership Act of 1932. Later, under Part IX of the Companies Act of 1956, it was changed from a partnership to a private limited company known as Coffee Day Holdings Company Private Limited.
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