Representative image indicating a housing scam
Credit: iStock Photo
Bengaluru: The Central Crime Branch (CCB) of the Bengaluru police has filed an FIR against Ozone Urbana Infra Developers Private Limited, several banks, and financiers for allegedly defrauding homebuyers of nearly Rs 3,300 crore.
Registered on December 9, the FIR names Ozone Urbana Infra Developers, Housing Development Finance Corporation (HDFC) Ltd, India Bulls Housing Finance Ltd, Bank of Baroda, and Piramal Capital & Housing Finance Limited. Charges include criminal breach of trust, cheating, criminal conspiracy, and fraudulent default under relevant sections of the Indian Penal Code (IPC) and the Karnataka Protection of Interest of Depositors in Financial Establishments Act.
People named in the FIR include Vasudevan Satyamoorthy, Priya Vasudevan, Satyamoorthy Sai Prasad, Durbhakula Vamsi Sai, Srinivasan Gopalan, Seewosagar Nemchand, Rajeev Bhandari, Bittal Mangilal Singhi, S Baaskaran, Gaurav Goel, and Ganapathi Joshi.
Allegations of misuse
Errol John Noronha, president of the Ozone Urbana Buyers Welfare Association and the complainant, accused the developers of securing loans in buyers' names without completing the project.
He alleged that funds were diverted to other entities and companies.
The FIR states the developer took Rs 1,500 crore as mortgage loans from banks in buyers’ names and directly collected Rs 1,800 crore from the buyers, amounting to a total fraud of Rs 3,300 crore.
Delayed project
The Ozone Urbana Township Project, launched in 2012 in Devanahalli, was to be completed by 2017. However, only 49 per cent of the project is complete as of now, according to the complainant. The developers reportedly assured buyers through advertisements — both online and offline — that they would cover EMIs until the project was completed.
Despite directives from Karnataka Real Estate Regulatory Authority (K-RERA), the developers failed to respond, the FIR notes. A writ petition was filed in the Karnataka High Court on August 12, 2024. The investigation is ongoing.