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Ed arrests ozone urbana chief over 927-crore homebuyer fraud
Directorate of Enforcement arrests Ozone Urbana CMD over alleged Rs 927 crore fraud involving homebuyers. ED alleges misappropriation of funds and failure to deliver apartments.
At a glance
Why it matters
The arrest of Ozone Urbana’s CMD highlights systemic issues in real estate fraud and the need for stronger regulatory oversight to protect homebuyers from financial exploitation.
Key facts
- ED arrested S. Vasudevan for alleged Rs 927.2 crore fraud involving homebuyers.
- The company allegedly failed to deliver apartments and misappropriated funds.
- Multiple FIRs and CBI investigations were initiated against the firm and its promoters.
- Provisional attachment order was issued for immovable properties valued at Rs 423.7 crore.
- Parallel PMLA investigation was launched against three associated companies.
What happens next
The ED will continue its investigation and seek further legal action against Vasudevan and associated entities within the next 14 days.
The Directorate of Enforcement (ED) has arrested S. Vasudevan, CMD and promoter of Ozone Urbana Infra Developers Pvt Ltd, in connection with a money-laundering investigation into alleged fraud involving homebuyers. The arrest followed an investigation into the company’s alleged failure to deliver apartments and misappropriation of funds, with ED alleging that the firm defrauded homebuyers of Rs 927.2 crore.
The ED stated that the investigation was initiated based on multiple FIRs registered under Sections 419, 420 and 120B of the Indian Penal Code at various police stations in Bengaluru. These FIRs allege that the company induced customers by offering to pay pre-construction EMIs until possession was handed over but failed to fulfill its commitments. The agency also alleged that the company neither delivered the residential units nor refunded the amounts deposited by homebuyers, instead misappropriating the upfront booking and loan amounts.
According to the ED, searches were conducted at various premises on August 1, 2025, during which several incriminating documents were seized. The agency issued a provisional order on April 4, 2025, attaching immovable properties valued at Rs 423.7 crore. A parallel investigation under the Prevention of Money Laundering Act (PMLA) was also initiated based on three FIRs registered by the Central Bureau of Investigation (CBI) against Ozone Infra Developers Pvt Ltd, Ozone Realtors Pvt Ltd, and Ozone Projects Pvt Ltd. Vasudevan is a common director of all three companies.
Vasudevan was arrested on September 30 under Section 19 of the PMLA and produced before a Special Court in Bengaluru on October 1. The court granted the ED 14 days’ custody for further investigation. The ED aims to probe the alleged generation, diversion, layering, and utilisation of proceeds of crime, including the role of group entities and individuals through whom the funds were routed.
The CBI had previously raided 12 premises in Bengaluru, Mumbai, and Pune on September 10 in connection with the cases. Over 50 cases have been registered across the country in relation to the alleged fraud. The ED’s investigation continues to gather evidence to support the charges against Vasudevan and the associated entities.