SEBI Levies 26 Crore Rupees Penalty On Cafe Coffee Day Parent Company Instruction For Recovery Of Rs 3400 Crore

Cafe Coffee Day: SEBI has imposed a heavy penalty of Rs 26 crore on Coffee Day Enterprises, a company running a coffee chain under the name of Cafe Coffee Day. Along with this, instructions have also been given to recover Rs 3,400 crore. The Securities and Exchange Board of India (SEBI) issued this order on 24 January. Coffee Day is alleged that the company has used the money of its subsidiaries in a company linked to the promoters.

SEBI has also ordered the company to deposit the fine amount within 45 days. Along with this, it has been asked to take steps to recover the dues within 60 days. SEBI has given these instructions after investigation and said in its order that the company has transferred Rs 3,535 crore from its 7 subsidiary companies to Mysore Amalgamated Coffee Estates Limited (MACEL), this company is connected to CDEL.

Which seven companies transferred money

Coffee Day Enterprises has seven subsidiaries Coffee Day Global, Tangling Realty Realty Development, Tangling Development, Giri Vidyut India Limited, Coffee Day Holders & Resort, Coffee Day Trading and Coffee Day Akon. SEBI has said that the money taken from these seven companies should be recovered from Coffee Day Enterprises Mysore Amalgamated Coffee Estates Limited along with interest. At the same time, the company has been asked to appoint an independent law firm after consulting NSE to recover the dues.

money in private accounts

SEBI has said in its 43-page report that the money sent by seven companies to MACEL went to the personal accounts of VG Siddhartha and his family. Please inform that VG Siddharth is the late chairman of Coffee Day Enterprises, who committed suicide in July 2019. Before suicide, he had written in a letter that he was in huge debt.

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