ED raids realty firm for diverting flat buyers' funds in Bengaluru

Bengaluru: The Directorate of Enforcement (ED) on Friday raided the offices of Ozone Urbana Developers in connection with a case where the company allegedly collected money from homebuyers without handing over flats. 

Ozone Urbana Developers has been constructing apartment complexes near the Kempegowda International Airport (KIA) and sold flats to thousands in 2015-2016.    

As per the agreements, the flats were supposed to be handed over to customers by the end of 2018. However, by 2024, only 49% of the flats had been completed. Many customers had filed complaints against the company. Based on those complaints, the ED began an investigation under the Prevention of Money Laundering Act (PMLA). 

ED sources said searches were conducted at 10 locations, including the company’s offices in Bengaluru, Devanahalli and Mumbai, and the residences of its promoters. Documents related to sale agreements and banking transactions have been seized, the sources added. 

Investigations showed that the promoters diverted funds collected from homebuyers for other purposes, and multiple loans were taken against the same property, the sources said.