The Directorate of Enforcement (ED) began raids at 10 premises linked to the promoters of the Ozone Urbana Housing Township, at Kannamangala in Devanahalli taluk on the outskirts of Bengaluru, who are one of the biggest defaulters of Karnataka Real Estate Regulatory Authority (RERA-K) revenue recovery orders. Thousands of home buyers have been fighting the promoters of the project over delays and lack of refunds despite several orders from RERA-K.
This is the second case where promoters of a real estate project in Bengaluru have been raided by the ED. In 2022, ED had raided and provisionally attached properties worth ₹300 crore linked to Mantri Developers Private Limited, and arrested its promoter Sushil P. Mantri.
In a statement issued on the raids on August 1, ED stated that raids were being conducted under Prevention of Money Laundering Act, 2002 at 10 premises linked to Ozone Urbana Developers Private Limited and its key management personnel in Bengaluru and Mumbai. The main promoter of this group is Satyamoorthi Vasudevan, ED stated.
The company and its promoters are named in multiple FIRs for cheating people in Karnataka, based on which ED has registered a Enforcement Case Information Report (ECIR), and conducted the raids.
“The integrated township project was to be handed over to buyers in 2018. However, till 2024, only 49% of the project was completed. The company has failed to hand over the project and has neither returned the money to buyers. It is alleged that the accused company, along with its key management personnel, have cheated various gullible customers to the tune of hundreds of crores and misappropriated the funds,” according to the ED statement.
The company lured buyers ‘by promising to pay EMIs to the banks against the loans taken by the home buyers from the financial institutions on behalf of the buyers until completion of the project, by promising huge discounts if buyers pay the full amount in advance against the bookings, and with a buyback scheme,” according to the ED statement.
Homebuyers are ‘hopeful now’
The raids have come as a relief to home buyers, as despite RERA-K orders for revenue recovery and refund to several home buyers, the company hasn’t paid up. In a total of 211 cases, RERA-K issued revenue recovery orders worth ₹186.36 crore, of which only in 10 cases the orders have been implemented and ₹7.53 crore recovered. In the remaining 201 cases, revenue recovery orders amounting to ₹178.82 crore are yet to be implemented.
One such homebuyer, Vinod Kumar, who had moved for a refund and got a first-of-its kind order from RERA-K in February 2025, said the ED raids had raised hopes of homebuyers, who have sought a refund, that they will get their money back.
“The township includes several apartment projects and as on date, the promoters are yet to hand over 2021 flats to homebuyers. While many are waiting for the flats, I have moved for a refund,” Mr. Kumar said.
Landmark order
Vinod Kumar and Parul Chaudhary had appealed to RERA-K that as Ozone Urbana Developers Private Limited owed more than ₹170 crore in the form of execution orders, but cannot satisfy these orders as they have no company assets, the directors of the company should be impleaded in the execution proceedings.
In a landmark order, RERA-K had held seven directors of the company ‘liable and responsible for the acts of the company’, and ordered for the directors to be impleaded in the execution orders.
This meant that revenue recovery could be made from their personal assets as well.
However, on an appeal by the company, the High Court of Karnataka gave a stay on this order, sources said.
Published – August 01, 2025 03:09 pm IST
