Mumbai/Bengaluru, May 15 -- Strata, one of India's largest fractional real estate platforms, has surrendered a crucial licence following a dispute with its builder-partner over a project in Tamil Nadu as well as allegations of a company executive impersonating a regulator. The Securities and Exchange Board of India (Sebi) on Wednesday said Strata has surrendered its small and medium real estate investment trust (SM Reit) licence, and cautioned investors about the dispute over the company's project in Hosur. Strata had not launched any SM Reit scheme under the licence, Sebi said in a post on social media platform X on Wednesday. A Strata spokesperson said the company had voluntarily surrendered its SM Reit licence without admitting or denying any wrongdoing, and that it intended to apply for a fresh licence after the litigation is concluded. The Hosur warehouse project, launched in 2020-21, was developed by builder Avigna and funded through multiple rounds by Strata's fractional real estate investors. However, disputes between Strata and Avigna have since spiralled, according to persons familiar with the matter who have invested in Strata Reit projects. Strata founder Sudarshan Lodha obtained anticipatory bail from the Madras high court on April 22 amid allegations that a company official had impersonated a Sebi officer to get information from Avigna. Mint has seen a copy of the bail order. Arbitration proceedings between Strata and Avigna have been dragging on for months with no outcome yet. Investors' concerns have also mounted over the fees taken by Strata for the incomplete project. Several investors raised the matter with Strata in meetings, but the inherent illiquidity of the asset class makes exit difficult. To make matters worse, there are conflicts of interest. According to a letter from Avigna, a copy of which Mint has seen, Avigna had extended a Rs.2.5 crore loan to Strata founder Sudarshan Lodha. Additionally, Lodha's brother-in-law reportedly acquired property in the same project at a price lower than what Strata's own investors paid. Mint has seen a copy of the document. Strata, though, termed it a "personal transaction". "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 the conclusion of the current litigations, we intend to apply for a fresh licence at a future date. This matter does not affect the existing investments with Everstrat (the real estate platform)," the company said in response to Mint's queries. Avigna has declined to comment on the matter....