The Directorate of Enforcement (ED), Bengaluru, on October 4, issued a provisional attachment order under the Prevention of Money Laundering Act (PMLA), 2002, attaching immovable properties valued at Rs 423.38 crores belonging to Ozone Urbana Infra Developers Pvt. Ltd. and associated entities.
An official statement from the ED on October 4 noted that the primary allegation against Ozone Urbana Infra Developers Pvt. Ltd. is the default in completing construction projects on time and failing to deliver possession to customers.
The company allegedly lured homebuyers by offering to allow pre-construction EMIs until the flats were handed over. However, the builder failed to meet its commitments, neither delivering possession nor refunding the amounts paid by buyers, and misappropriated the entire upfront booking or loan funds, the ED said.
The ED’s investigation in this matter was initiated based on multiple FIRs filed under Sections 419, 420, and 120B of the Indian Penal Code, 1860, at various Bengaluru police stations against Ozone Urbana Infra Developers Pvt. Ltd. and its promoters.
Additionally, a FIR was registered by the CBI, New Delhi, against the company and its promoter, following directions from the Supreme Court.
Earlier, the ED’s Bangalore Zonal Office carried out search operations on August 1 under Section 17 of PMLA, 2002, at 10 premises linked to the case, seizing several documents indicating diversion and misappropriation of project funds.
During the course of its investigation, the ED discovered that Ozone Urbana Infra Developers Pvt. Ltd., along with its main promoter S. Vasudevan, defrauded homebuyers to the tune of Rs 927.22 crores by failing to deliver possession of apartments/units, thereby dishonestly retaining and diverting the funds.
The accused allegedly routed the funds to other group entities and associated individuals, including S. Vasudevan and his family members.
As a result, the company and S. Vasudevan generated proceeds of crime amounting to Rs 927.22 crores, diverting the funds for purposes other than the intended construction and development of Ozone Urbana projects.
To protect the interests of the customers, immovable properties of Ozone Urbana Infra Developers Pvt. Ltd. (unsold units in the Avenue project – 92 flats – and Aqua 2 project – 13 flats, plus 4.5 acres of commercial land) and personal properties of promoter S. Vasudevan and his wife (179 acres at Kannehalli Village, Mudigere) totaling Rs 423.38 crores have been provisionally attached.
The ED stated that further investigation under PMLA is ongoing.
