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NEWS BULLETIN
HOSPITALITY BIZ NOVEMBER, 2024 3
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Sebi Orders Suspension of Embassy REIT’s CEO Amid

Allegations of Negligence in Financial Reporting

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

ITC Consolidates Stake in Oberoi Tourism Ministry Launches Free ‘Paryatan

and Leela Brands Amidst Hotel Mitra’ Training for Hotel Staff to Boost
Hospitality Standards in Mysuru
Business Demerger HBI Staff | Hyderabad

HBI Staff | Hyderabad (operator of Leela Hotels) from RCL n a push to elevate tourism standards, the Ministry of
at book value. This acquisition will ITourism’s ‘Paryatan Mitra’ and ‘Paryatan Didi’ initiative
TC Ltd., currently undergoing increase ITC’s total shareholding launched a two-day training program in Mysuru, inaugurated
Ithe demerger of its hotel business, to 16.13% in EIH and 8.11% in by D. Venkatesan, Regional Director of Tourism (South). The
announced on Thursday HLV. Additionally, ITC’s program, attended by Joint Director of Tourism M.K. Savita
that its board has board has approved the and Hotel Owners’ Association President Narayana Gowda,
approved consolidating acquisition of Greenacre provides free training to hotel staff on enhancing service
its shareholding in two Holdings Ltd, an unlisted quality, cleanliness, and effective tourist engagement. Aimed at
key rival hospitality subsidiary of RCL, at book fostering a positive tourist experience, the initiative underscores
brands, Oberoi value. These acquisitions the importance of hospitality, sustainability, and safety in the
and Leela. ITC will are subject to the necessary industry. n
acquire shares held approvals from RCL’s
by its wholly-owned board.
subsidiary, Russell This strategic move
Credit Ltd (RCL), to strengthen its aligns with ITC’s broader plan to
investments in these chains. establish ITC Hotels Ltd, a new entity
In a regulatory filing, ITC set to operate over 140 properties
revealed plans to acquire 1.52 under six brands, including ITC
crore shares of EIH Ltd (the parent Hotels, Welcomhotel, and Fortune,
company of Oberoi and Trident) with the demerger receiving
and 34.60 lakh shares of HLV Ltd shareholder approval in June 2024. n

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