ED Raids Ozone Urbana Infra Developers
• ₹4,000 Crore Real Estate Fraud Exposed
• ED Raids Blow Open Massive Housing Scam in Bengaluru
• Victims Still Homeless, Courts and KRERA Struggle to Act
Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098
Sprouts News Exclusive
Contact: +91 9322755098
The ED has raided Ozone Urbana Infra Developers over a ₹4,000 crore real estate scam. Hundreds of buyers were duped with fake promises, diverted funds, and double sales. Despite court orders and KRERA action, victims await justice. Sprouts SIT highlights this as a major housing fraud demanding urgent regulatory and legal intervention.
ED Raids Ozone Urbana in Massive Real Estate Scam
In a major crackdown on real estate fraud, the Enforcement Directorate (ED) has launched search operations at 10 premises in Bengaluru and Mumbai linked to Ozone Urbana Infra Developers Pvt Ltd and its promoters. The raids, conducted on August 1 under the Prevention of Money Laundering Act (PMLA), 2002, target Satyamoorthi Vasudevan, the principal promoter, following a series of police complaints and mounting buyer grievances.
The ED’s action comes amid a multi-crore scam involving the Ozone Urbana township project in Devanahalli, where the builder allegedly collected huge sums from buyers but failed to deliver the promised flats. While possession was promised by 2018, only 49% of the project is complete as of 2024.
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Contents
- ED Raids Ozone Urbana Infra Developers
- • ₹4,000 Crore Real Estate Fraud Exposed
- • ED Raids Blow Open Massive Housing Scam in Bengaluru
- • Victims Still Homeless, Courts and KRERA Struggle to Act
- ED Raids Ozone Urbana in Massive Real Estate Scam
- Diversion of Funds and Misleading EMI Schemes Under Scanner
- Victims Left in Legal Limbo as Authorities Drag Feet
- KRERA Orders Personal Liability on Directors
- Ozone Group Denies Charges, Cites Compliance
- Also Read: Crores Siphoned in Bhandari Bank Property Scam Exposed.
- ED Investigation to Expand; Systemic Real Estate Reform Needed
Diversion of Funds and Misleading EMI Schemes Under Scanner
According to the ED, Ozone Urbana developers used misleading marketing tactics like “No EMI till possession”, “Buyback guarantees”, and “2X return schemes” to lure buyers. However, instead of deploying funds for construction, the company allegedly diverted money to other group entities and individuals.
The Sprouts News Investigation Team (SIT) has accessed documents suggesting multiple instances of fund diversion, double sale of units, and non-compliance with regulatory directives. Investigators reportedly seized key financial records proving criminal misappropriation and a possible conspiracy to defraud buyers and banks.
₹3,300 Crore Fraud in Bengaluru Alone; Over ₹4,000 Crore Nationwide
In North Bengaluru’s Ozone Urbana project, the Resident Welfare Association (RWA) filed an FIR estimating total fraud at ₹3,300 crore—including ₹1,500 crore from unauthorised bank loans and ₹1,800 crore collected directly from customers. Across other Ozone projects in Chennai and Mumbai, similar patterns of deceit have surfaced, taking the total scam figure to ₹4,000 crore.
In Chennai’s Metrozone project, launched in 2008, hundreds of buyers allege that tripartite agreements were manipulated, loans disbursed without sales deeds, and buyers left facing EMI defaults—despite promises that the developer would cover all installments.
Victims Left in Legal Limbo as Authorities Drag Feet
Despite favourable orders from Karnataka RERA, the Central Crime Branch (CCB), and the Karnataka High Court, enforcement has been slow. Buyers claim the regulatory system has failed them. Many have escalated the issue to NCLT, CBI, and even the National Human Rights Commission (NHRC).
One tragic case is that of 78-year-old Dipak Chaudhary, who invested his retirement corpus in Ozone Urbana but now lies bedridden with Parkinson’s, while his wife continues a legal battle for justice.
KRERA Orders Personal Liability on Directors
In February 2025, KRERA invoked the doctrine of lifting the corporate veil, holding seven Ozone directors personally liable for non-compliance. But execution remains patchy. Some buyers have even withdrawn complaints from KRERA, citing its ineffectiveness, and are now seeking redress in civil and criminal courts.
Ozone Group Denies Charges, Cites Compliance
In an earlier response to Moneylife, Ozone Group claimed:
•1,425 units delivered in Chennai’s Metrozone, with 132 nearing completion
•1,818 units handed over in Bengaluru, 695 pending
•Claims of multiple sales “factually incorrect”
•Company is following court orders and has filed a resolution plan with RERA
The group denied any collusion with banks, procedural violations, or defiance of judicial directives. It expressed willingness for third-party audits and regulatory cooperation.
Also Read: Crores Siphoned in Bhandari Bank Property Scam Exposed.
ED Investigation to Expand; Systemic Real Estate Reform Needed
The ED is now focused on tracing proceeds of crime, identifying asset trails, and conducting further searches and arrests. The Sprouts News Investigation Team (SIT) has found that refund liabilities across Karnataka real estate projects already exceed ₹486 crore, with the Ozone scam becoming a litmus test for state and central regulators.
The case raises serious questions about banking oversight, regulatory enforcement, and the accountability of large developers. Legal experts and buyers’ associations are urging the CBI and Ministry of Corporate Affairs to step in before more lives are destroyed.
