ED arrests Ozone Urbana promoter in Rs 927-cr homebuyer fraud case

Bengaluru, Oct 3 (UNI) The Enforcement Directorate has arrested Ozone Urbana Infra Developers promoter and CMD S Vasudevan in an alleged Rs 927.22-crore homebuyer fraud case, with the agency now probing the alleged diversion and layering of funds through multiple group companies.

Vasudevan was arrested by the ED's Bengaluru Zonal Office on September 30 under the Prevention of Money Laundering Act (PMLA) and was subsequently remanded to 14 days' custody by the Special Court (PMLA), Bengaluru, on October 1. The ED's action follows its investigation into alleged fraud by Ozone Urbana Infra Developers Pvt Ltd and its promoters, based on multiple FIRs registered in Bengaluru and a separate case registered by the CBI's Economic Offences-I, New Delhi, on the direction of the Supreme Court.

According to the ED, the company allegedly lured homebuyers with an offer to pay pre-construction EMIs until possession of their flats was handed over. However, the projects were allegedly not completed within the promised timelines, leaving buyers without possession and their deposited money. The agency alleged that the company neither delivered the residential units nor refunded the amounts paid by homebuyers, and that the upfront booking and loan amounts were allegedly misappropriated.

The investigation has revealed alleged fraud involving Rs 927.22 crore of homebuyers' money, with apartments or units not delivered against the amounts received, the ED said. The probe has also widened to the movement of the alleged proceeds of crime across Ozone group entities. Vasudevan is a common director of Ozone Infra Developers Pvt Ltd, Ozone Realtors Pvt Ltd and Ozone Projects Pvt Ltd, all of which are under investigation in separate CBI cases relating to alleged homebuyer fraud.

The ED had earlier searched premises linked to the case on August 1, 2025, under Section 17 of the PMLA and seized incriminating documents. It subsequently issued a Provisional Attachment Order on October 4, 2025, attaching immovable properties worth Rs 423.378 crore under the PMLA.

The agency said Vasudevan's arrest followed material gathered during the investigation and is intended to establish how the alleged proceeds of crime were generated, diverted, layered and utilised, besides determining the role of the promoter, group entities and other persons through whom the funds were allegedly routed. Further investigation is under progress, the ED said.

UNI BDN