Coffee Day Enterprises, the company that owns the Café Coffee Day chain, said Tuesday that its chairman, V.G. Siddhartha had been "unavailable" since the previous night.
Siddhartha founded Coffee Day in 1993 and opened the first Café Coffee Day in the South Indian city of Bangalore three years later. The company has since developed into India's largest coffee chain and has more than 1,700 branches in 245 Indian cities since last year.
Shares in Coffee Day Enterprises fell 20% to a record low on the Bombay Stock Exchange.
"We are taking advantage of the help of the authorities involved." The company said in a statement. "[The company] is professionally managed and led by a [a] competent leadership team that will ensure the continuity of the business," he added.
The company could not be reached immediately for further comments.
Siddhartha owns 33% of Coffee Day Enterprises last month, while its wife and family businesses own another 21%, according to a recent filing. The company went public in 2015.
Coffee Day also has retail outlets in Austria, the Czech Republic, Egypt, Malaysia and Nepal and exports coffee to various markets, including North America, Europe and the Middle East.