The Central Crime Branch (CCB) of Bengaluru police has registered an FIR against Ozone Urbana Infra Developers Limited and several bank officials, following allegations by homebuyers of a fraud amounting to Rs 3,300 crore. The complaint filed on December 9 by the Ozone Urbana Buyers Welfare Association, accuses the developer and its directors of criminal breach of trust, cheating, and conspiracy, claiming that funds meant for the township project in Devanahalli were misappropriated.
The complaint, filed by association president Errol John Noronha on December 9, names the developer and its directors Vasudevan Satyamoorthy, Priya Vasudevan, and Satyamoorthy Sai Prasad as primary accused. Other individuals implicated include directors and officials of Housing Development Finance Corporation (HDFC) Ltd, Indiabulls Housing Finance Ltd, Bank of Baroda, and Piramal Capital & Housing Finance Ltd.
The Ozone Urbana Township project in Kannamangala village, Devanahalli taluk, was launched in 2012 with 1,800 flats spread across 45 acres. While sales began in 2013, the project was supposed to be completed by 2017. However, only 49% of the construction is finished, according to the complaint.
The FIR states that the developers secured loans amounting to Rs 1,500 crore in the buyers’ names without their knowledge and collected an additional Rs 1,800 crore directly from homebuyers. The funds were reportedly diverted to other entities
The FIR has been registered under sections 406 (criminal breach of trust), 409 (Criminal breach of trust by public servant or by banker, merchant or agent), 420 (Whoever cheats and thereby dishonestly induces the person deceived to deliver any property), 120B (criminal conspiracy), and 34 (Acts done by several persons in furtherance of common intention) of the Indian Penal Code, and the Karnataka Protection of Interest of Depositors in Financial Establishments Act.
Despite Karnataka Real Estate Regulatory Authority (K-RERA) directives and assurances of covering EMIs until project completion, the developers reportedly failed to deliver, the complaint states.
Separate complaints have also been filed with the Karnataka High Court and K-RERA for recovery of buyers' payments. In a previous ruling, K-RERA directed the developers to refund Rs 1.02 crore to a buyer after failing to honor assured returns, pre-EMI payments, and timely possession.