Aravind Maiya has stepped down as the CEO of Embassy Office Parks, the biggest real estate investment trust (REIT) in India, with immediate effect, the company announced.
Maiya's resignation comes after the Securities and Exchange Board of India (Sebi) ordered the Embassy REIT its management to temporarily suspend him.
Additionally, Sebi has ordered the immediate appointment of an interim CEO.
The National Financial Reporting Authority (NFRA) has taken this regulatory action after fining Maiya Rs 50 lakh and debarring her for ten years for "professional misconduct" involving the audit of Coffee Day Enterprises, which is said to have covered up a large fraud. On August 19, the NFRA made their decision public.
Established in 2019, Embassy REIT oversees investments from unit holders totaling about Rs 40,000 crore. In July 2023, Maiya assumed the position of chief executive for the management of the REIT.
Sebi emphasized that the Embassy REIT management had shown "significant reluctance" to take corrective action in order to comply with the "fit and appropriate standards" in relation to Maiya's behavior.
The regulator stated that the management had to find a new CEO within 30 days of Maiya's disqualification. In the interim order, Sebi member Ashwani Bhatia emphasized that the regulator has the right to make sure Maiya serves out his debarment for professional misconduct rather than taking on unrelated leadership positions that require a high level of competence and integrity in the financial industry.
Serious carelessness and a lack of due diligence during the Coffee Day audit were noted in the NFRA's order, including Maiya's inability to disclose material misstatements. According to earlier Sebi findings, Coffee Day's subsidiaries and linked parties received a transfer of Rs 3,535 crore from Coffee Day's accounts without the required authorization.
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