This interim order follows a previous order by the National Financial Reporting Authority (NFRA), which debarred Maiya for 10 years over alleged professional misconduct linked to his former role as an auditor for Coffee Day Enterprises Ltd (CDEL).
NFRA’s findings highlighted serious lapses in audit standards and due diligence under Maiya’s watch, which contributed to a high-profile financial scandal involving CDEL.
Sebi said these lapses, according to NFRA, led to significant investor losses, questioning Maiya’s adherence to the rigorous standards expected in the securities market.
Embassy Office Parks had argued against the suspension, contending that the NFRA’s order did not compromise Maiya’s qualifications as a “fit and proper person” in his current capacity. However, SEBI’s order rejected this argument
Sebi said that Aravind Maiya was guilty of professional misconduct due to gross negligence, failure to exercise due diligence and disclose material facts and report material misstatements known to him.Citing the gravity of NFRA’s findings, Sebi said any individual with a record of significant misconduct posed an inherent risk to investor trust and the integrity of the securities market.The regulator noted that allowing Maiya to continue to helm the affairs of Embassy REIT as CEO of its Manager, even after an NFRA order in force calls into question his professional conduct, integrity and competence, which may cause harm to investors.
“Leadership accountability is a keystone of market confidence, and requires unimpeachable integrity. This is a case where Sebi is constrained to intervene in order to firmly enforce the fit and proper criteria in the interest of investors,” it said.