The Embassy Real Estate Investment Trust (REIT) announced the immediate removal of its CEO, Aravind Maiya, through an official statement released on November 7, 2024.
Despite stepping down from the CEO role, Maiya will continue to serve as the Head of Strategy for Embassy REIT.
This leadership change follows a directive from the Securities and Exchange Board of India (SEBI), which mandated Maiya’s removal after an inquiry by the National Financial Reporting Authority (NFRA) in August.
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The NFRA had examined the conduct of statutory auditors of Coffee Day Enterprises, focusing on their involvement in financial irregularities during the 2018-2019 fiscal year. Maiya, serving as an engagement partner at the auditing firm during that time, was implicated in the investigation.
In its statement, Embassy REIT clarified, “We refer to the interim order cum show cause notice from the Securities and Exchange Board of India (SEBI) dated November 4, 2024. While we are in the process of reviewing the order and exploring all available options, in adherence to SEBI’s directive, Aravind Maiya will step down as CEO of Embassy REIT effective immediately and assume the role of Head of Strategy.”
The NFRA, which monitors the performance of auditors, reported significant shortcomings on the part of Maiya and others during their tenure with Coffee Day Enterprises. Although Maiya has contested the NFRA’s findings, SEBI determined that he did not presently meet the “fit and proper” criteria required for leadership positions within regulated entities like REITs. SEBI’s order suggested that Maiya’s conduct failed to prioritize public interest, resulting in potential harm to ordinary investors.
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The Board and Management Team of Embassy REIT will continue to oversee all operational and capital allocation activities to ensure that business operations remain unaffected during this period. As the team evaluates the best approach for appointing an interim CEO, maintaining stability and continuity remains a top priority, the REIT clarified in its statement.
It also stressed that their primary focus remains on upholding the highest standards in governance and ensuring the continued success of Embassy REIT.
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