Bengaluru Developers Under Investigation for Alleged ₹3,300 Crore Fraud
Bengaluru’s Central Crime Branch (CCB) has taken a significant step against Ozone Urbana Infra Developers Private Limited, along with multiple banks and financial institutions, in a staggering fraud case that has reportedly defrauded homebuyers of ₹3,300 crore. The complaint, lodged by Errol John Noronha, president of the Ozone Urbana Buyers Welfare Association, outlines a disturbing pattern of deceit involving misappropriated funds and unfulfilled housing projects.
The filed FIR reveals that Ozone Urbana secured ₹1,500 crore through mortgage loans and misappropriated an additional ₹1,800 crore from homebuyers’ payments. Despite launching the Ozone Urbana township project in 2012 in Devanahalli with promises of completion by 2017, the project is languishing at a mere 49% completion, leaving hopeful buyers in distress.
Victims assert that they were drawn in by aggressive marketing tactics that included assurances of the developers covering their EMIs until project delivery. However, these commitments appear to have been hollow, as funds were allegedly siphoned off to other ventures, leaving buyers and lending institutions stranded.
High-profile financial institutions implicated include Housing Development Finance Corporation (HDFC), Indiabulls Housing Finance, Bank of Baroda, and Piramal Capital. Multiple charges, ranging from criminal breach of trust to cheating, are now being pursued against the accused, including Ozone Urbana’s Managing Director Vasudevan Satyamoorthy and key executives.
Additionally, despite directives from the Karnataka Real Estate Regulatory Authority (K-RERA) mandating the deposit of 70% of project funds into an escrow account, the developers are accused of failing to comply. Investigators are currently focused on tracing the misappropriated funds to hold the responsible parties accountable, marking a significant moment in protecting buyers’ interests in Bengaluru’s troubled real estate market.
