Karnataka High Court Grants Interim Relief to Café Coffee Day in FEMA Case

The Karnataka High Court has granted interim relief to Café Coffee Day (CCD) by deferring FEMA adjudication proceedings initiated by the Enforcement Directorate.

Justice BM Shyam Prasad ordered that the personal hearing scheduled for January 30, 2026, be kept in abeyance until the matter is heard next on February 23. 

The proceedings arise from alleged FEMA violations linked to foreign direct investment received by Coffee Day Enterprises Limited in 2010. CCD argued that the mandatory reasons for initiating an inquiry were neither properly recorded nor communicated, rendering the proceedings legally flawed.

The Court has sought the ED’s response and will examine the matter in detail at the next hearing.