CDEL asks its 6 subsidiaries and a JV to file suit against MACEL for recovery of dues

Coffee Day Enterprises Ltd (CDEL) on Monday said it has asked its subsidiaries and one joint venture firm to file suit against MACEL for recovery of dues.

In July 2020, an investigation revealed that Mysore Amalgamated Coffee Estates Limited (MACEL) owes Rs 3,535 crore to the subsidiaries of CDEL.

The investigations had revealed that Rs 3,535 crore was siphoned off from the company by late founder V G Siddhartha's personal firm MACEL.

In August 2020, CDEL had appointed Justice K L Manjunath, a former judge of the Karnataka High Court, to ''suggest and oversee actions'' for recovery of the amount.

Following Justice Manjunath's untimely demise in January this year, CDEL board had on February 7, 2022 appointed Justice Nagamohandas in his place and asked him to submit a report.

''We wish to inform that the board at its meeting held today took on record the recommendation of Justice H N Nagamohandas, a retired judge of High Court of Kamataka, who recommended filing a commercial suit against MACEL for recovery of amounts by 6 subsidiaries and one joint venture of the company,'' said CDEL in a regulatory filing.

The board has conveyed the same to 6 subsidiaries and one joint venture of the company and has instructed the subsidiaries to take the necessary steps, it added.

In a separate filing, CDEL informed its board, in a meeting held on Monday, appointed Giri Devanur as an additional director (independent & non-executive) with effect from July 25, 2022.

In addition to that Nithin Bagamane has resigned as a member of the executive committee from CDEL and its material subsidiary Coffee Day Global Ltd with effect from Monday due to his preoccupation with other engagements, the regulatory updates added.

Coffee Day Global Ltd owns and operates the popular coffee chain CCD.

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