Strata was one of the first platforms to register under SEBI’s newly introduced SM REIT framework, which was designed to regulate fractional ownership in real estate and allow investors to pool capital for shared ownership of commercial properties
The Securities and Exchange Board of India (SEBI) has issued a cautionary notice to investors after Strata, a commercial real estate platform co-founded by Sudarshan Lodha and Priyanka Rathore, voluntarily surrendered its registration as a Small and Medium Real Estate Investment Trust (SM REIT).
The move follows legal controversy involving the platform’s promoter and has prompted SEBI to engage with Strata’s independent directors, compliance officials, and trustee before the decision was finalized.
“After engagement and discussions, Strata SM REIT has surrendered its certificate of registration and will not hold out or represent itself as a SEBI-regulated intermediary,” SEBI said in a public statement on Tuesday. “This communication is being issued in the interest of investors, advising them to exercise caution while dealing with the entity.”
Strata was one of the first platforms to register under SEBI’s newly introduced SM REIT framework, which was designed to regulate fractional ownership in real estate and allow investors to pool capital for shared ownership of commercial properties. Strata had received SEBI approval in January 2025 and planned to launch six schemes in the current financial year. However, the platform had not yet rolled out any schemes under the SM REIT framework nor migrated any existing entities into the new structure.
The legal controversy relates to a dispute with a Tamil Nadu-based real estate firm that deals with land for industrial and warehousing purposes. According to an anticipatory bail order from the Madras High Court, a case was filed against Sudarshan Lodha for allegedly impersonating a SEBI official and using a fake email ID to seek confidential information.
Lodha’s legal team has refuted the allegations, calling the complaint an attempt to “arm-twist” the accused after failing to secure a favorable outcome in arbitration and civil litigation. “This complaint is false and malicious,” they claimed in court filings.
In a statement issued on Wednesday, Strata said: “In light of the ongoing matter, we have voluntarily surrendered our SM REIT licence without admitting or denying any wrongdoing, as a measure of abundant caution. Upon conclusion of the current litigation, we intend to apply for a fresh licence at a future date. This matter does not affect the existing investments with Everstrat.”
The SEBI advisory serves as a reminder to investors to thoroughly evaluate the credibility and regulatory status of platforms offering real estate investment opportunities.
