Coffee Day Gets Breather: SAT Extends Stay on SEBI’s Rs 26 Crore Penalty

Image Source: NDTV

Coffee Day Enterprises Ltd (CDEL), the parent of Café Coffee Day, has received a sixmonth extension on the stay order issued by the Securities Appellate Tribunal (SAT) regarding SEBI’s Rs 26 crore penalty.

Key Highlights:

The penalty was imposed by SEBI in January 2023 for alleged diversion of Rs 3,535 crore from seven CDEL subsidiaries to Mysore Amalgamated Coffee Estates Ltd (MACEL), a promoterlinked entity.
SAT’s March 3 order maintains the stay on the penalty until the appeal is resolved, subject to Coffee Day furnishing an undertaking to deposit the amount if the tribunal rules against it.

Background Context:

The financial irregularities surfaced following the death of founder VG Siddhartha in 2019, who admitted sole responsibility in a note.
SEBI directed CDEL to recover the diverted funds and appoint an independent law firm under NSE oversight.

Sources: Moneycontrol, NDTV Profit, Fortune India.