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

Investors in CIG Realty Fund have approached the Securities Appellate Tribunal (SAT) alleging breach of contract by the fund's trustees, leading to inconvenience. They invested around ₹650 crore collectively in schemes I, II, and IV, registered with SEBI as a venture capital fund. \r

Allegations include wrongful extension of schemes beyond permitted timeframes. In December 2023, SEBI ordered winding up the schemes within six months and fined Unitech Advisors, the fund manager. Trustees were fined ₹10 lakh each and barred from new assignments. Complaints against the fund included extension of scheme tenures, non-liquidation, and underperformance. \r

The SAT will hear the matter on 26 July. Queries to investors' counsel and trustees remained unanswered.