ED Raids Bengaluru and Mumbai Real Estate Promoters Over Fraud Allegations
The Enforcement Directorate (ED) has conducted raids on 10 premises linked to the promoters of the Ozone Urbania Housing Township in Bengaluru, amid complaints from homebuyers about severe delays and lack of refunds.
Real EstateEd RaidsFraud AllegationsHomebuyersRerakarnatakaReal Estate MumbaiAug 01, 2025
This marks the second instance in which the promoters of a real estate project in Bengaluru have come under the ED’s scanner. Back in 2022, the ED had raided and provisionally attached properties worth Rs 3,000 crore linked to Mantri Developers Private Limited.
The ED’s sleuths conducted searches at 10 premises connected to a builder group and its key management personnel in Bengaluru and Mumbai, officials stated. The searches were still underway, and the ED’s Bengaluru zonal office was conducting the operation under Section 17 of the Prevention of Money Laundering Act (PMLA).
“The integrated township project was to be handed over to buyers in 2018. However, by 2024, only 49 per cent of the project was completed. The company has failed to hand over the project and has neither returned the money to the buyers,” said the officials.
It is alleged that the accused company, along with its key management personnel, has cheated various gullible customers by inducing the customers in many ways. According to the ED, the firm and its key management personnel cheated various gullible customers by promising to pay EMIs to the banks against the loans taken by the home buyers from the financial institutions on behalf of the buyers until the completion of the project. They also promised many buyers huge discounts if they paid the full amount in advance against the bookings.
It is also alleged that the builder induced buyers who purchased units, flats, and apartments in the project with buyback schemes, 2X-schemes, and other incentives. The directors of the company are accused of collectively cheating its buyers to the tune of hundreds of crores and misappropriating the funds.
“There are multiple FIRs against the company and its promoters, which necessitated the investigation under PMLA,” added the officials.
The ED’s actions highlight the ongoing issues in the real estate sector, where delays and financial mismanagement can have severe consequences for homebuyers. The investigation is expected to shed light on the extent of the fraud and the measures needed to protect consumers in the future.
Frequently Asked Questions
What is the Ozone Urbania Housing Township project?
The Ozone Urbania Housing Township is a real estate project located in Kannamangala, Devanahalli Taluk, Bengaluru. It was supposed to be handed over to buyers in 2018, but as of 2024, only 49% of the project was completed.
Why did the ED raid the premises linked to the project?
The ED conducted raids due to mounting complaints from homebuyers about severe delays and the lack of refunds, despite multiple orders from RERA-Karnataka.
What are the key allegations against the project’s promoters?
The key allegations include cheating gullible customers by promising to pay EMIs, offering huge discounts for full payment, and inducing buyers with buyback and 2X-schemes.
How many premises were raided by the ED?
The ED raided 10 premises linked to the promoters of the Ozone Urbania Housing Township in Bengaluru and Mumbai.
What is the significance of the ED’s action under the PMLA?
The ED’s action under the Prevention of Money Laundering Act (PMLA) signifies the seriousness of the allegations and the need to investigate financial mismanagement and fraud in the real estate sector.
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