NRIs Trapped in Debt as Ozone Urbana Township Remains Stalled for Over a Decade
NRIs and domestic homebuyers are trapped in debt and despair as the Ozone Urbana township project in Bengaluru remains undelivered, despite promises of a 2016-17 completion.
Real EstateOzone GroupNrisBengaluruStalled ProjectsReal EstateAug 29, 2025
At that time, the company was doing such heavy marketing that none of us suspected anything was wrong, he said.
Norrohna is not alone. Many NRIs who invested in the Ozone Urbana project say they are now trapped in mounting debt, with homes booked more than a decade ago still undelivered. Launched in 2012 as a “world-class residential hub” near the international airport, the township promised delivery by 2016-17. Instead, the project remains incomplete, leaving buyers, most of whom paid between ₹1 crore and ₹3 crore, struggling with rising bank loans, accumulating interest, and a deep sense of betrayal.
The Ozone Urbana housing township, developed by Ozone Group, is located in Kannamangala village in North Bengaluru and comprises 2000 apartments of various dimensions spread across 45 acres. The project was launched in 2012, and the developer was expected to deliver the units by 2016-2017.
According to Norrohna, there are around 2,000 buyers in the Urbana project. Strikingly, only about 10% are domestic buyers, while the rest are NRIs from countries including the UAE, Canada, the United States, Singapore, and Malaysia.
From Dubai alone, there are at least 100 buyers. If you add it all up, the total money invested is no less than ₹2,000 crore, he said.
Buyers say they feel financially and emotionally stranded. Many invested their life savings, others took on bank loans, and some, like Errol, face the compounded hardship of losing jobs abroad while being tied to non-existent homes in India. The weight of EMI payments with nothing to show in return has left several families in distress.
I know cancer patients who, even while undergoing chemotherapy, are still running around to recover their investment. We have also seen retired defence personnel still fighting to get back the money they put into this project, one of the NRIs said.
Despite repeated assurances, the project has not seen meaningful progress in years. While buyers allege they were misled by aggressive marketing and unrealistic promises, the lack of accountability has only deepened their struggles.
It is not just about money; it is about trust. We NRIs came back to invest in India with faith, and this is what we got, Norrohna said.
One aggrieved buyer, who wished to remain anonymous, narrated his struggles: We paid 90% in 2014 for a township near Bengaluru Airport. Nine years later, it’s still incomplete.
He detailed how he invested almost 90% of his apartment’s cost in 2014–15, with delivery promised for October 2016. Instead, less than half the township has been built, with facades painted only to create an illusion of progress, while land was sold to another developer and large parcels were mortgaged for thousands of crores.
The buyer also shared his legal battle of filing a case before Karnataka RERA in 2020, which resulted in an order directing the developer to refund his money with interest. But the company challenged enforcement, leading to repeated delays through appeals in the High Court. In a further twist, the developer even filed a ₹20 crore defamation suit against him, a move he called a clear attempt at intimidation.
Despite having a clear RERA order in my favour, justice keeps getting delayed through endless appeals and stays. Why isn’t the High Court at least compelling real estate companies to deposit the refund amount in court while their appeals are heard? Unless refunds are secured upfront or appeals are routed only through the RERA Tribunal with a 100% deposit, developers will continue filing frivolous cases just to delay, the buyer told HT.com.
Such a step would protect homebuyers from years of hopeless waiting and show that consumer rights matter more than corporate tactics. Today, RERA orders with recovery certificates already exceed ₹200 crore across more than 500 complaints, yet enforcement remains only on paper, the buyer pointed out.
Several homebuyers allege that Karnataka RERA’s orders remain largely on paper, with little relief reaching those affected.
One retired professional, who did not wish to be named, shared that he had booked an apartment in 2014 by paying ₹90 lakh, hoping it would be his post-retirement home. After retiring in March 2017, however, the project is still incomplete. In 2023, he secured a KRERA order awarding him ₹1.4 crore as compensation, but despite the ruling, the developer has not complied.
With his savings tied up in the stalled project, he has now moved back to his hometown and continues to wait for justice from the Karnataka High Court.
Legal experts point out that while Karnataka RERA provides a mechanism for homebuyers to seek refunds or compensation in delayed projects, implementing its orders remains a major challenge. Once KRERA issues a ruling, the responsibility of recovering funds lies with the state’s revenue department, which must treat such dues as land arrears.
Frequently Asked Questions
What is the Ozone Urbana township project?
The Ozone Urbana township project is a residential development located in Kannamangala village in North Bengaluru, comprising 2000 apartments spread across 45 acres. It was launched in 2012 with a promised delivery date of 2016-17.
Who are the main investors in the Ozone Urbana project?
The main investors in the Ozone Urbana project are NRIs from countries like the UAE, Canada, the United States, Singapore, and Malaysia, with only about 10% of the buyers being domestic.
What are the primary issues faced by the buyers?
Buyers are facing financial and emotional distress due to the project's delay. Many have invested their life savings, taken on bank loans, and are now struggling with rising EMIs and accumulating interest without any tangible returns.
What legal actions have been taken by the buyers?
Buyers have filed cases with Karnataka RERA, securing orders for refunds and compensation. However, developers often challenge these orders in the High Court, leading to delays and further complications.
Why is the High Court not compelling real estate companies to deposit refund amounts in court?
The High Court is not compelling real estate companies to deposit refund amounts in court while their appeals are heard, which buyers argue is essential to protect homebuyers from endless delays and ensure timely justice.
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