Speciality Restaurants534425Show cause notice

Clarification on ED Provisional Attachment of ₹14,50,09,700 Forfeited Warrant Money; Company Not an Accused

Clarification on the provisional attachment order (PAO) from the Directorate of Enforcement.

By ScoutQuest · Mon 28 Sep 2026, 2:47 AM IST · 2 min read

Amount Attached: ₹ 14,50,09,700 (plus interest)
Attachment Duration: 180 days
Source of Funds: 25% upfront money received on convertible warrants, forfeited after allottees did not pay remaining 75% within 18 month conversion period
Company Status: Not named as accused; company is noticee as holder of attached amount
Operational Impact: No immediate impact on operations; amount earmarked and not used in ordinary course of business

What the update says

This is a follow-up clarification to the company's earlier disclosure of 26 September 2026 on a provisional attachment order (PAO) issued in connection with a Directorate of Enforcement investigation. The company states the material facts are unchanged.

The amount involved

The PAO covers ₹ 14,50,09,700, together with interest, lying in a bank account of the company.
The attachment is for a period of 180 days.
The attachment is confined to that amount and does not extend to the company's other assets.

Where the money came from

The sum was the 25% upfront amount received by the company on allotment of convertible warrants to certain allottees. The company forfeited it because those allottees did not pay the remaining 75% within the prescribed 18 month conversion period. The investigation, as understood from the PAO, concerns those investors or warrant allottees and funds received from them.

Company's position

The company says it is not named as an accused in the underlying investigation and that no complaint has been shared against it.
It is a noticee to the PAO only as the holder of the attached amount.
The PAO does not initiate any action against the company.
The PAO records that the company, through its authorised representative and with Board authority, gave a statement and undertook to keep the amount available.

Business impact stated

The company states there is no immediate impact on its operations or other activities, other than the restriction on the specified amount. That amount has been earmarked and is not being used in the ordinary course of business.

What to watch

The company says it continues to cooperate with the Directorate of Enforcement and will pursue remedies available in law, with material developments to be intimated to the exchanges. Investors may note that an attachment of this nature involves a regulatory process whose outcome is not yet determined.

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