Strata, a prominent fractional real estate investment platform, has voluntarily surrendered its registration as a Small and Medium Real Estate Investment Trust (SM REIT) with the Securities and Exchange Board of India (SEBI). This decision follows ongoing legal disputes involving one of its promoters and a Tamil Nadu-based real estate developer.
SEBI accepted Strata’s surrender application and issued a cautionary note to investors, advising them to exercise discretion when dealing with the entity. The regulator clarified that Strata had not launched any SM REIT schemes nor migrated any existing fractional real estate holdings under the SM REIT framework. The decision was made after reviewing certain legal proceedings against Strata’s promoter and engaging with the company’s trustee, independent director, and compliance officers.
The controversy centers around a warehousing project in Hosur, developed in partnership with Avigna Space. Disputes over construction delays and ownership issues have led to arbitration proceedings. Additionally, allegations have surfaced that a Strata executive impersonated a SEBI official to obtain information from Avigna, prompting a police complaint and further legal scrutiny.
In response, Strata has stated that it voluntarily surrendered its SM REIT license without admitting or denying any wrongdoing. The company intends to reapply for a fresh license after the conclusion of the ongoing litigations. Strata emphasized that this development does not affect existing investments through its primary platform, Everstrat, and assured investors that business operations continue as usual.
Founded in 2019 by Sudarshan Lodha and Priyanka Rathore, Strata has raised over ₹2,000 crore in assets under management, with a portfolio spanning 3.5 million square feet across major Indian cities. The company had previously rebranded its primary platform to Everstrat to differentiate it from the SEBI-regulated SM REIT business.
Investors are advised to stay informed about the developments and exercise caution when considering investments related to Strata’s offerings.
