Investors of CIG Realty Fund move SAT against trustees for ‘breach of trust’

livemint.com:

₹650 crore across all schemes.In their plea filed before the tribunal last week, the investors alleged that the schemes were wrongfully extended beyond the permissible time, leading to breach of contract, causing “grave inconvenience" to the investors.“The fund has clearly made a mockery of the trust and faith invested by the applicants along with other investors," investors said in the plea cited earlier. “The trustees have failed to maintain the integrity and highest standards expected, particularly in not ensuring proper care, due diligence and independent professional judgement in winding up the schemes."A real estate fund, with corpus typically pooled from retail investors, invests in securities of real estate companies.A copy of the petition was seen by Mint.In December 2023, Sebi had passed an order against Unitech Advisors (now known as Auram Asset Management) — the fund manager to the realty fund —, its directors Sanjay Chandra, Ajay Chandra, Ramesh Chandra, and Hitendra Malhotra.

Others named included the present trustees of CIG Realty Fund Anil Harish, Vijay Tulshyan, Mahesh Kumar Sharma, and Rakesh Dhingra. The regulator had asked them to wind up the schemes of the fund by providing exit to its investors within six months.This comes a couple of months after the trustees too challenged the Sebi order.These trustees were fined ₹10 lakh each and barred from taking new assignments as trustees of Alternative Investment Fund (AIFs) of any category for one year.