Real Estate Fraud: Bengaluru Builders Under ED Scanner

The Enforcement Directorate (ED) launched raids against Bengaluru-based Ozone Urbana Developers and its promoters, accused of deceiving homebuyers by taking money for an incomplete residential project. Despite promises to cover homebuyers' EMIs, nearly half the project remains unfinished six years past the deadline. The ED action follows multiple police FIRs.

The Enforcement Directorate (ED) has intensified its crackdown on real estate malpractice by raiding a Bengaluru-based company accused of defrauding homebuyers. Ozone Urbana Developers Pvt. Ltd., alongside its key figures, is under scrutiny for allegedly duping buyers of crores in exchange for incomplete homes.

The investigation led by the ED involved searches at ten locations linked to the company's main promoter, Satyamoorthi Vasudevan, spread across Bangalore and Mumbai. The actions were conducted under the sections of the Prevention of Money Laundering Act (PMLA), following numerous FIRs connected to the Ozone Urbana project in Devanahalli Taluk, Bengaluru.

Promised delivery of the housing project was due by 2018, but only 49 percent completion was achieved by 2024, leaving many buyers without their homes or refunds. Allegations suggest the company enticed buyers with offers to pay EMIs and promised hefty discounts and buyback schemes. The ED claims promoters misappropriated buyer funds running into hundreds of crores.

(With inputs from agencies.)