ED Seizes Rs 423 Crore Properties in Bengaluru Real Estate Fraud Case
The Enforcement Directorate (ED), Bengaluru Zonal Office, has provisionally attached immovable properties worth Rs 423.38 crores in connection with an investigation against Ozone Urbana Infra Developers Pvt. Ltd. and others. The ED initiated its investigation based on multiple FIRs registered under Sections 419, 420, and 120B of the Indian Penal Code, 1860, at various police stations in Bengaluru against the company and its promoters. Additionally, a separate FIR was registered against the company and a promoter by the CBI, EO-I, New Delhi, following a directive from the Supreme Court.
The primary allegation against Ozone Urbana Infra Developers Pvt. Ltd. is that it defaulted on completing construction projects on time and failed to hand over possession to customers. The company is accused of inducing potential buyers by offering to pay pre-construction EMIs until the flats were handed over. However, it failed to honour these commitments and did not complete the projects. The builder neither delivered the residential units to homebuyers nor refunded their money, instead misappropriating the entire upfront booking amount and loan disbursals.
Earlier, the ED's Bengaluru Zonal Office conducted search operations under Section 17 of the PMLA, 2002, on August 1, 2025, at 10 premises in this case. These searches led to the seizure of various incriminating documents related to the diversion and misappropriation of project funds. During its investigation, the ED discovered that Ozone Urbana Infra Developers Pvt. Ltd., along with its main promoter, S. Vasudevan, defrauded home buyers of approximately Rs 927.22 crores. The accused did not deliver the apartments/units and instead dishonestly diverted the funds to other group entities and associated individuals, including Vasudevan and his family members. Consequently, the company and S. Vasudevan generated proceeds of crime amounting to Rs 927.22 crores, routing them through various entities and using them for purposes other than the intended construction and development.
To safeguard the customers' interests, the ED has provisionally attached immovable properties, including unsold stock in the 'Avenue' (92 flats) and 'Aqua 2' (13 flats) projects, 4.5 acres of commercial land belonging to the company, and personal properties of its promoter S. Vasudevan and his wife (179 acres of land at Kannehalli Village, Mudigere). The total value of the attached properties is Rs 423.38 crores. Further investigation is ongoing.
