SEBI seeks more information on Coffee Day's accounts in connection with misappropriation of funds: Report

The Securities and Exchange Board of India (SEBI) has sought more details in relation to alleged misappropriation of funds by Coffee Day Enterprises Limited (CDEL) promoters and losses to public shareholders.

The market regulator has sent a show-cause notice requesting further information on funds raised by Coffee Day Group under the late VG Siddhartha and promoter-level transactions that caused losses for shareholders, according to a Mint report.

Moneycontrol could not independently verify the report.

SEBI and CDEL had not yet responded to requests for comment by Mint.

The show-cause notice was issued in accordance with SEBI's norms on fraudulent and unfair trade practices, as per a source quoted in the report.

In July 2020, an investigation into the circumstances of Siddhartha's death found that Rs 3,535 crore was siphoned off from the company by his firm Mysore Amalgamated Coffee Estates Limited (MACEL).

CDEL, which has debt of over Rs 3,000 crore, has been making efforts to clear its dues.

CDEL, which owns the Cafe Coffee Day chain, has denied reports that it is negotiating a sale of its vending machines business to Tata Consumer Products.