HBI Staff | Hyderabad 
In a major regulatory action, the Securities and Exchange Board of India (Sebi) has directed Embassy Office Parks Management Services Pvt Ltd to suspend Aravind Maiya as its Chief Executive Officer (CEO) and appoint an interim CEO immediately. Embassy Office Parks Management Services oversees the operations of Embassy REIT, India’s first publicly listed real estate investment trust with a portfolio spanning 51.1 million square feet. The Embassy REIT portfolio also includes four operational business hotels Hilton at Embassy GolfLinks, Hilton Garden Inn at Embassy Manyata, Hilton & Hilton Garden Inn, Four Seasons at Embassy One, and two additional hotels currently under construction.
The order, issued by Sebi on Monday, November 4, cites Maiya’s recent debarment by the National Financial Reporting Authority (NFRA) over “serious lapses” in his role as an engagement partner for the statutory auditor of Coffee Day Enterprises Ltd (CDEL). Sebi’s ruling underscores Maiya’s alleged gross negligence, which it claims contributed to securities market fraud at CDEL.
Sebi’s interim order states, “Mr. Aravind Maiya thoroughly failed the listed company (CDEL), users of its financial statements, standards of his profession as well as public interest, by failing to audit and report a fraud which was evident in all the financial information he was supposed to vet.” The order further criticized Maiya’s professional conduct, describing it as a breach of fiduciary duty and a failure to meet the “fit and proper” standards required of investment firm leaders.
This decision follows NFRA’s findings in August, which outlined alleged lapses in CDEL’s 2018-19 financial reports, implicating Maiya and others. Though Maiya has appealed the NFRA ruling, Sebi emphasized that these findings suggest a failure to act in the public’s interest, with repercussions for ordinary investors.
Sebi also took aim at Embassy REIT management, stating that despite “numerous emails, meetings, and specific instructions,” the company resisted the suspension of Maiya. In response to Sebi’s directive, Embassy REIT is required to appoint an interim CEO to assume leadership responsibilities without delay.
