Capital markets regulator SEBI (Securities and Exchange Board of India) directed EOPMSPL (Embassy Office Parks Management Services Pvt Ltd) to suspend its CEO (Chief Executive Officer), Arvind Maiya. An interim CEO will be appointed immediately in place of Arvind Maiya, according to SEBI. Currently, the SEBI has imposed a Rs 50 lakh penalty on Arving Maiya.
This order from SEBI resulted from August instructions from the NFRA (National Financial Reporting Authority). The NFRA’s instructions imposed a 10-year department on Arvind from audits because of his serious lapses in his professional behaviour. Around ten years ago, Arvind Maiya was misconducting in his former role in CEDL, which has led to this situation. This whole case is related to the diversion of Rs 3,535 crore from seven subsidiary companies of CDEL.
NFRA started a suo motu examination into the professional misconduct of statutory auditors of CDEL (Coffee Day Enterprise Ltd) after SEBI’s order of January 2023. At that time, SEBI penalised the parent company of Cafe Coffee Day for unproven fund diversion.
SEBI, which allowed multiple schemes to help companies gain profit with purpose, is tightening its grip on EOPMSPL. In a 27-page interim order issued on Monday, SEBI directed EOPMSPL for Arvind Maiya’s suspension. EOPMSPL is given 21 days to file its reply or object to the order.
A member of the SEBI board named Ashwani Bhatia said on the matter, “I note that the NFRA order dated August 19, 2024, was effective after 30 days from the issuance of the order and as per the submissions of the noticee (EOPMSPL) an appeal has been filed by Aravind Maiya against the NFRA order. However, it is also pertinent to note that the appeal is pending, and no stay has been granted.”
