Karnataka High Court Questions ED's 12-Year Delay in FEMA Proceedings Against Malavika Hegde

The Karnataka High Court questioned Enforcement Directorate proceedings under the Foreign Exchange Management Act against Cafe Coffee Day chief executive Malavika Hegde concerning a 2010 transaction after a delay exceeding twelve years.

Background and legal issue

Justice K.S Hemalekha asked whether adjudicatory action could lawfully be initiated after such a prolonged lapse Hegde has challenged the show-cause notice and subsequent hearing notices

Reasoning and significance

The Court's observations are preliminary and do not amount to quashing the FEMA proceedings or determining liability The case raises the broader administrative-law question whether unexplained delay can make regulatory enforcement unfair or legally unsustainable when the governing statute does not permit indefinite inaction.

The legal effect is confined to the ruling or procedural development reported here. Allegations and submissions are not treated as established facts unless expressly adjudicated.