BENGALURU: In a major action against illegal financial fraud in the real estate sector, the Enforcement Directorate (ED) has provisionally attached assets worth crore belonging to Bengaluru-based firm Ozone Urbana Infra Developers and its promoter, S. Vasudevan. The action stems from a money-laundering probe that alleges the developer defrauded homebuyers of over crore by diverting funds meant for a large integrated township project near Bengaluru’s airport.
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The Enforcement Directorate (ED) has stepped into one of Bengaluru’s most high-profile real estate disputes by provisionally attaching properties valued at crore tied to Ozone Urbana Infra Developers Pvt Ltd and its chief promoter, S. Vasudevan. This move, executed under the Prevention of Money Laundering Act (PMLA), follows a deep probe into financial irregularities and the alleged siphoning of funds collected from thousands of homebuyers.
The ED’s investigation was initiated based on a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI), which itself was registered following directions from the Supreme Court. The core allegation is that the company collected payments totaling crore from customers for apartments in its flagship project, Ozone Urbana, but failed to deliver the units. Instead, the funds were allegedly “dishonestly retained and diverted” to other group entities, associated individuals, and the promoter’s family members, effectively generating “proceeds of crime.”
Details of the Attached Assets
The properties now under provisional attachment represent a significant portion of the alleged ill-gotten gains. The attached assets, totaling crore in value, include:
- Unsold Residential Inventory: flats in the Avenue project and flats in the Aqua 2 project, both part of the Ozone Urbana residential complexes.
- Commercial and Personal Land Holdings: acres of commercial land located in Bengaluru.
- Rural Land Holdings: acres of land in Kannehalli village, Mudigere (Chikkamagaluru district), which is registered under the name of promoter S. Vasudevan’s wife.
- Personal Properties of the promoter, S. Vasudevan.
The attachment order prevents these assets from being sold, transferred, or otherwise disposed of while the investigation remains pending. This measure is intended to safeguard the value of the assets, which may eventually be confiscated if the money-laundering charges are substantiated in court.
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A Long-Standing Homebuyer Crisis
The ED’s action comes after a years-long struggle for hundreds of homebuyers who invested their savings in the Ozone Urbana township, marketed as one of South India’s largest integrated projects near the Kempegowda International Airport. Launched in 2012, the 45-acre project, which was to include around 1,800 apartments, was originally slated for completion between 2016 and 2017.
However, years of delays and incomplete units have left buyers—many of them senior citizens—in financial and legal distress. The developer has faced mounting legal troubles, including multiple FIRs filed by the Central Crime Branch (CCB) and individual buyers. Some complaints even allege that apartments were resold to new customers without the original buyer’s knowledge. The frustration of those affected was highlighted in March 2025 when residents withdrew all complaints from the Karnataka Real Estate Regulatory Authority (KRERA), citing its perceived inability to deliver timely or effective relief.
The Path Ahead for the Investigation and Investors
The ED’s next step involves tracing the flow of the remaining diverted funds across various group entities and personal accounts. Should the money-laundering charges be legally confirmed by the Adjudicating Authority and upheld in court, the ED could move to permanently confiscate the attached properties.
The prospect of confiscation provides a potential, albeit long, path for defrauded homebuyers to seek restoration of their funds or a share of the proceeds realized from the attached assets. Legal experts note that the process is complex and dependent on the final judicial outcome of the PMLA case. Meanwhile, the homebuyers and investors remain anxiously awaiting clarity on the ultimate recovery of their investment and the future of the stalled Ozone Urbana project.
