Market regulator Sebi has issued an interim order directing Embassy Office Parks Management Services Private Limited (EOPMSPL), manager of Embassy REIT, to suspend its CEO Arvind Maiya. Citing "serious lapses" and violations related to the audit of Coffee Day Enterprises Limited (CDEL) during FY19, Sebi has ordered the suspension of Embassy Office Parks Management Services CEO Arvind Maiya, while an interim CEO is to be appointed immediately.

The order said that EOPMSPL should appoint an interim CEO with immediate effect. This action of SEBI started from the investigation of the National Financial Reporting Authority (NFRA), which found serious flaws in Mayya's role as an engagement partner in the audit of Coffee Day Enterprises Limited (CDEL) during the financial year 2019. Embassy REIT manages unitholders' funds worth Rs 40,000 crore. Arvind Mayya was appointed CEO of the REIT's manager in July 2023. The engagement partner barred from auditing for 10 years is the person in the audit firm who leads the assignment. The NFRA investigation revealed several issues of professional misconduct in the statutory audit of CDEL, after which it was decided in August 2024 to ban Mayya from auditing for a maximum period of 10 years. The NFRA said that the audit team led by Mayya failed to identify significant fund diversion in CDEL, resulting in huge losses to investors. According to SEBI Whole Time Member Ashwani Bhatia, "The NFRA order reveals deliberate violation of applicable audit norms, which led to failure to identify large-scale fraud in a listed company, while Arvind Mayya was in a special position to understand this due to his professional assignment and domain knowledge.