The Central Crime Branch (CCB) of Bengaluru police has filed a case against Ozone Urbana Infra Developers Private Limited, accusing the company of defrauding homebuyers of a staggering Rs 3,300 crore. The case involves several banks and financial institutions, which are alleged to have been complicit in this massive fraud.
According to industry sources, the scale of this alleged fraud is unprecedented in Bengaluru’s real estate sector. Investigative agencies are now working to trace the misappropriated funds and uncover the full extent of the conspiracy. The complaint was filed by Errol John Noronha, president of the Ozone Urbana Buyers Welfare Association, who claims that the developers secured loans in buyers’ names, misused the funds, and failed to deliver promised housing projects.
The FIR accuses Ozone Urbana developers of obtaining Rs 1,500 crore in mortgage loans and diverting an additional Rs 1,800 crore from homebuyer payments meant for their township project in Devanahalli, launched in 2012. However, the project remains only 49% complete, well behind its initial completion deadline of 2017. Homebuyers have expressed frustration, with many claiming that they were shown glossy brochures and assured that their EMIs would be taken care of until the project’s completion. Instead, buyers have been left with unfinished homes and mounting debts. The FIR also names major financial institutions such as HDFC, Indiabulls Housing Finance, Bank of Baroda, and Piramal Capital and Housing Finance, accusing them of complicity in the alleged fraud. The charges against the developers include criminal breach of trust, cheating, criminal conspiracy, and violations under the Karnataka Protection of Interest of Depositors in Financial Establishments Act.
One of the affected buyers highlighted that the developers violated the Karnataka RERA regulations, which mandate that 70% of funds should be kept in an escrow account for the project. Despite this, the developers allegedly failed to hold the required funds and misused them for other purposes. The suspects in the case include Managing Director Vasudevan Satyamoorthy, his wife Priya Vasudevan, and key executives Satyamoorthy Sai Prasad and Durbhakula Vamsi Sai. Investigators are currently tracing the diverted funds and preparing to take further legal action. The case has sent shockwaves through Bengaluru’s real estate industry, with buyers calling for stricter oversight and immediate justice for the financial and emotional toll they have suffered due to this alleged scam. The investigation continues as authorities expand their probe to uncover all parties involved.
