ED Raids Bengaluru’s Ozone Urbana in ₹3,300 Crore Homebuyer Fraud Probe
Massive scam leaves thousands cheated
The Enforcement Directorate (ED) launched extensive raids on August 1, 2025, targeting Bengaluru-based real estate firm Ozone Urbana Developers Pvt. Ltd. and its promoters, accused of defrauding over 1,800 homebuyers of ₹3,300 crore. The searches, conducted under the Prevention of Money Laundering Act (PMLA), covered 10 premises in Bengaluru and Mumbai, including the residences of key promoter Satyamoorthi Vasudevan, his wife Priya Vasudevan, and executives Satyamoorthy Sai Prasad, Durbhakula Vamsi Sai, and Srinivasan Gopalan.
The probe stems from multiple FIRs filed by Bengaluru’s Central Crime Branch (CCB) in December 2024, following complaints from the Ozone Urbana Buyers Welfare Association, led by Errol John Noronha. The FIRs allege that Ozone Urbana, behind the 185-acre Ozone Urbana township project in Devanahalli, collected ₹1,800 crore directly from buyers and secured ₹1,500 crore in mortgage loans in buyers’ names, only to divert funds to other ventures. Launched in 2012 with a 2017 completion promise, the project remains 49% complete as of 2024, leaving buyers stranded.
The ED alleges Ozone Urbana lured buyers with false promises, including paying bank EMIs until project completion, offering steep discounts for full upfront payments, and promoting a “buyback scheme” that never materialized. Karnataka RERA’s August 2024 report flagged the company for owing ₹486 crore in refunds, with only ₹93 crore repaid. A February 2025 K-RERA ruling held seven directors personally liable for non-compliance, a move hailed by homebuyer Vinod Kumar as a win for accountability.
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The raids uncovered incriminating documents and digital devices, with the ED suspecting funds were siphoned to shell companies and overseas accounts. Advocate Reynold D’Souza, representing the buyers, told Hindustan Times, “The promoters mortgaged the project without informing buyers, cheating them of ₹3,300 crore.” The Karnataka High Court quashed notices against directors’ private properties in 2024, complicating recovery efforts.
This case mirrors other real estate scams, like Ramprastha Group’s ₹1,100 crore fraud, where ED arrested promoters in July 2025. Bengaluru’s real estate sector, contributing 15% to Karnataka’s GDP, faces scrutiny, with 1,110 pending RERA recoveries statewide. The ED continues tracing the money trail, as affected buyers demand justice and refunds.
