Explained: ED attaches ₹423 crore in assets of Bengaluru-based Ozone Group. Key details
The ED attached ₹423 crore in assets of Ozone Urbana Infra Developers, part of the Ozone Group, over alleged fund diversion in its Bengaluru township project
The Enforcement Directorate (ED) has attached properties worth ₹423.38 crore belonging to Bengaluru-based real estate company Ozone Urbana Infra Developers Pvt Ltd and its promoter S Vasudevan, according to a press statement issued by the agency. The ED attached ₹423.38 crore in assets linked to Ozone Urbana Infra Developers and its promoter under the PMLA after probing alleged financial irregularities.
The money laundering probe stems from a Central Bureau of Investigation (CBI) FIR, which was registered on the directions of the Supreme Court. The CBI had alleged that the company collected large sums from homebuyers but failed to deliver the apartments, instead diverting the money elsewhere, the ED said.
The ED had earlier conducted searches in this case in August as part of its investigation into the flow of funds.
Also Read: Bengaluru real estate: Homebuyer approaches police after developer sells his flat to a new buyer
What properties have been attached?
According to the Enforcement Directorate, the attached assets include unsold inventory from two of Ozone Urbana Infra Developers’ residential projects, 92 flats in Avenue and 13 flats in Aqua 2, along with 4.5 acres of commercial land in Bengaluru, personal properties of promoter S. Vasudevan, and 179 acres of land in Kannehalli village, Mudigere (Chikkamagaluru district) registered under Vasudevan’s wife. The total value of these attached properties amounts to ₹423.38 crore, the agency said in its statement.
ED alleges Ozone Urbana Infra Developers defrauded homebuyers of ₹927 crore
The ED maintains that Ozone Urbana Infra Developers and its promoter defrauded homebuyers of ₹927.22 crore by collecting payments for apartments and then failing to deliver the promised units.
According to the agency, the accused “dishonestly retained and diverted” the funds meant for construction and development to other entities and individuals.
“The accused diverted the funds to other group entities and associated individuals, including Vasudevan himself and his family members,” the ED said, adding that the funds were used for purposes other than the intended real estate projects.
The agency maintains that the diversion of money, amounting to ₹927.22 crore, was then layered through various companies and personal accounts.
Also Read: 'Fraud' with home buyers: ED attaches assets worth ₹423 cr in Karnataka
Who are Ozone Urbana Infra Developers?
Ozone Urbana Infra Developers Pvt Ltd is part of the larger Ozone Group, a real estate developer with operations spanning residential, commercial, and mixed-use projects in Bengaluru, Chennai, and Mumbai.
The company’s flagship project, Ozone Urbana, located near the Kempegowda International Airport in Bengaluru, was marketed as one of South India’s largest integrated townships, spanning residential complexes, schools, hospitals, and commercial spaces.
However, over the past few years, several homebuyers have reportedly raised concerns over delayed possession and incomplete units. Several homebuyers, including many senior citizens who had invested their life savings, now find themselves caught in a long and exhausting legal battle. Years of delays have upended their financial plans and left their dream of owning a home in limbo.
Earlier, in March 2025, residents of the Ozone Urbana township in Bengaluru withdrew all seven complaints they had filed with the Karnataka Real Estate Regulatory Authority (KRERA), citing the authority’s inability to deliver timely or effective relief. Many described KRERA as “ineffective and powerless” in ensuring accountability for the stalled project.
Located in Kannamangala village in North Bengaluru, the Ozone Urbana township spans 45 acres and includes around 1,800 apartments of varying sizes. Launched in 2012, the project was originally scheduled for completion between 2016 and 2017, but years later, hundreds of homebuyers are still waiting for their promised homes.
FIRs filed against the developer
In January 2025, a homebuyer who had invested in a housing project in Bengaluru approached the city police after the Bengaluru-based real estate developer Ozone Group allegedly resold his apartment to a new buyer.
Buyer Bipul Bhattacharya approached the Devanahalli Police Station to register an FIR against the developer after discovering that his apartment in the Urbana Avenue project, located in north Bengaluru's Devanahalli, had been resold in June 2023, according to a report by HT.com.
The troubles for Ozone Group did not begin with the ED probe. Back in December, Bengaluru’s Crime Branch registered a First Information Report (FIR) against the company’s promoters after the Resident Welfare Association (RWA) of the Ozone Urbana Township accused them of defrauding homebuyers of more than ₹3,300 crore, HT.com reported.
The RWA’s complaint alleged that the developer had raised over ₹1,500 crore through mortgage loans taken in the names of buyers from various banks, in addition to directly collecting about ₹1,800 crore from the purchasers, money that was allegedly never used for project completion.
Earlier, in October last year, another buyer, Shashikanta Gupta, filed an FIR claiming that his apartment, which was due for handover in 2022, had been resold to another customer in 2021 without his knowledge. Gupta told HT.com that, despite more than 90 days having passed since he lodged the complaint, there has been little progress in the investigation, which remains ongoing.
What happens next?
With the attachment order in place, the ED will continue its investigation into how the diverted funds were moved across group entities and personal accounts. The attached assets cannot be sold or transferred during the pendency of the probe, legal experts said.
If the money-laundering charges are substantiated, the ED could move to confiscate the attached properties permanently after due legal process. Meanwhile, homebuyers and investors await clarity on the recovery of their funds and the future of the stalled projects, they said.
