Ozone Urbana CMD Arrested in ₹927.22 Crore Homebuyer Fraud Case

 

By The Realty Times | Real Estate News Services

Bengaluru: The Enforcement Directorate (ED) has arrested S. Vasudevan, Chairman and Managing Director (CMD) and promoter of Ozone Urbana Infra Developers Pvt. Ltd., in connection with an alleged ₹927.22 crore homebuyer fraud and money-laundering case.

Vasudevan was arrested on September 30, 2026, under Section 19 of the Prevention of Money Laundering Act (PMLA). He was subsequently produced before a special PMLA court in Bengaluru, which remanded him to 14 days of ED custody for further investigation.

According to the ED, Ozone Urbana Infra Developers allegedly collected around ₹927.22 crore from approximately 1,351 homebuyers in its Ozone Urbana township project at Devanahalli, Bengaluru. The agency alleges that the company failed to complete the project and hand over apartments to buyers despite receiving their money.

The investigation reportedly found that buyers were offered a scheme under which the developer would pay their pre-construction EMIs until possession of their homes. However, according to the ED, the promised apartments were not completed and the company allegedly neither handed over possession nor refunded the amounts paid by customers.

The financial investigation has also alleged that funds collected from homebuyers and financial institutions were diverted to other group companies and associated individuals instead of being used for construction and development.

An ED investigation document cited by the Karnataka High Court states that funds were allegedly transferred to various group entities and personal accounts, including those linked to Vasudevan and his family. The agency has described the alleged ₹927.22 crore as proceeds of crime in the money-laundering investigation.

The ED had previously taken action against assets connected with the case. In October 2025, the agency issued a provisional attachment order covering immovable properties valued at approximately ₹423.38 crore. The ED said the attachment was part of its investigation into alleged diversion and misappropriation of project funds.

The investigation originated from multiple FIRs registered in Bengaluru under cheating, conspiracy and related provisions. The agency also noted that the CBI had registered a separate FIR against the company and its promoter following directions from the Supreme Court.

The case highlights the financial and legal risks that can arise when funds collected from homebuyers are allegedly diverted away from the projects for which they were raised. It also underlines the importance of project-level financial discipline, regulatory monitoring and timely delivery in the real estate sector.

The ED investigation is continuing, and the allegations against the company and its promoter remain subject to judicial proceedings. An arrest or allegation does not by itself establish guilt, which must ultimately be determined through due legal process.