ED Arrests Ozone Urbana CMD in ₹927 Crore Homebuyer Fraud
Enforcement Directorate arrests S Vasudevan, CMD of Ozone Urbana, in a massive ₹927.22 crore homebuyer fraud and money laundering case.
The Enforcement Directorate (ED) has arrested S Vasudevan, the Chairman and Managing Director (CMD) and promoter of Ozone Urbana Infra Developers Pvt Ltd, in connection with a massive alleged fraud involving homebuyers worth ₹927.22 crore. The arrest marks a significant escalation in the ongoing money laundering investigation into the developer and its associated entities.
The Arrest and Legal Proceedings
According to official statements from the ED, Vasudevan was taken into custody on September 30 under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. Following the arrest, the Bengaluru Zonal Office produced him before a special court in Bengaluru on October 1. The court has since granted the ED 14 days of custody to facilitate further investigation into the complex web of financial transactions.
Allegations of Deception and Misappropriation
The investigation reveals a pattern of systemic deception aimed at unsuspecting customers. The primary allegations against Ozone Urbana Infra Developers Pvt Ltd and Vasudevan include:
- Failure to Deliver: The company allegedly failed to complete construction projects on time and did not hand over possession of apartments and units to buyers.
- Broken Promises: The builder reportedly induced gullible customers by promising to pay pre-construction EMIs until the flats were handed over.
- Diversion of Funds: Instead of completing the promised residential units, the company is accused of dishonestly retaining, diverting, and misappropriating the entire upfront booking amounts and loan amounts.
A Multi-Agency Investigation
The ED's probe was triggered by multiple First Information Reports (FIRs) registered at various police stations across Bengaluru City under sections 419, 420, and 120B of the Indian Penal Code. Additionally, the Central Bureau of Investigation (CBI) has registered an FIR against the company and its promoter following directions from the Supreme Court.
The investigation is currently looking into three specific companies: Ozone Infra Developers Pvt Ltd, Ozone Realtors Pvt Ltd, and Ozone Projects Pvt Ltd. Notably, Vasudevan serves as a common director across all three entities under investigation.
Previous Asset Seizures
The ED has already taken significant steps to secure assets related to the crime. On October 4 last year, a Provisional Attachment Order was issued, resulting in the provisional attachment of immovable properties valued at approximately ₹423.378 crore under the provisions of the PMLA.
The ongoing investigation aims to uncover the full extent of how the proceeds of crime were generated, layered, and utilized, specifically focusing on the role of the promoter and various group entities used to route the funds.