SEBI Warns about Strata SM REIT, which is No Longer a Registered Entity
Moneylife Digital Team 14 May 2025
Due to certain legal proceedings against its promoter, Strata Small and Medium Real Estate Investment Trust (SM REIT) has surrendered its registration. Market regulator Securities and Exchange Board of India (SEBI) has warned investors to exercise caution while dealing with Strata SM REIT as it is no longer a registered entity.
 
This decision follows a series of news reports and legal proceedings involving the promoter of Strata SM REIT. SEBI, in line with its regulatory responsibilities, engaged with Strata SM REIT's management, including its independent director, compliance officers and the trustee, to review the situation. The outcome of these discussions has led to the company's surrender of its REIT registration.
 
SEBI says, “It may be noted that Strata SM REIT has, as on date, not launched any SM REIT schemes nor migrated any pre-existing fractional real estate entities as a SM REIT scheme.”
 
“Investors are strongly advised to be vigilant and consider the regulatory developments before engaging with Strata SM REIT or any associated schemes,” the market regulator says.
 
According to a report from theheadandtale.com, last month, the Madras High Court granted anticipatory bail to G Sudarshan Lodha, chief executive officer (CEO) of Strata Property Management Pvt Ltd, in a cybercrime case involving alleged email impersonation of a SEBI official.
 
Justice Sunder Mohan issued the order on 22 April 2025, allowing Mr Lodha to be released on bail in the event of arrest, subject to a bond of Rs10,000 with two sureties.
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