Ichha Sharma
Coffee Day Global, the chain’s owner, was admitted for corporate insolvency last week. 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 company following the failure of the negotiations between Coffee Day Global and the IndusInd bank.
Skanda Legal and Tatva Legal are both attorneys for the petitioner and respondent, respectively, according to the official order made public by NCLT. The equity market regulator SEBI assessed the corporation with a fine of 26 crore in January 2023. The penalty was levied because money from subsidiaries was diverted to a business connected to the promoters. According to SEBI’s 43-page judgment, money worth 3,535 crores was diverted from 7 affiliates of Coffee Day Enterprises Ltd (CDEL) to Mysore Amalgamated Coffee Estates Ltd, a company connected to CDEL’s proprietors.
Through 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. Over 200 Indian cities are home to the company’s cafes. The portfolio of Coffee Day Global also comprises Logistics, Investments, Financial Services, Technology Parks & SEZs, and Hospitality.
In 2008, the business was established as a partnership entity following the Indian Partnership Act of 1932. Later, under Part IX of the Companies Act of 1956, it was changed from an association to a private limited company dubbed Coffee Day Holdings Company Private Limited.
Coffee Day Global, 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.