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Business
Karnataka HC probes 12-year delay in ED’s FEMA case against CCD CEO Malavika Hegde
✍️ The Economic Times
🗓 07 Oct 2026, 03:37 AM
👁 8
The Karnataka High Court has questioned the Enforcement Directorate’s 12‑year delay in pursuing a FEMA investigation against Cafe Coffee Day chief executive Malavika Hegde.
The Karnataka High Court today raised concerns over the Enforcement Directorate's prolonged inaction in a FEMA case involving Malavika Hegde, the chief executive of Cafe Coffee Day. The court noted that the investigation, originally opened more than a decade ago, has seen little progress, prompting the bench to seek a detailed explanation from the ED.
According to court records, the case was filed shortly after the 2010 foreign exchange violations were alleged against the coffee chain's leadership. Despite multiple extensions and periodic reviews, the ED has not filed a final report, leading the judges to question the reasons behind the twelve‑year lag.
The bench directed the Enforcement Directorate to submit a comprehensive status report within a stipulated timeframe, emphasizing the need for timely enforcement of FEMA provisions. Legal experts say the move underscores growing judicial scrutiny of financial investigations that appear stalled.
The outcome of the High Court's intervention could set a precedent for how long‑standing economic offences are handled by regulatory agencies in India, especially those involving prominent corporate figures.
According to court records, the case was filed shortly after the 2010 foreign exchange violations were alleged against the coffee chain's leadership. Despite multiple extensions and periodic reviews, the ED has not filed a final report, leading the judges to question the reasons behind the twelve‑year lag.
The bench directed the Enforcement Directorate to submit a comprehensive status report within a stipulated timeframe, emphasizing the need for timely enforcement of FEMA provisions. Legal experts say the move underscores growing judicial scrutiny of financial investigations that appear stalled.
The outcome of the High Court's intervention could set a precedent for how long‑standing economic offences are handled by regulatory agencies in India, especially those involving prominent corporate figures.