Money laundering case: ED arrests Ozone Urbana CMD for cheating homebuyers of over ₹927 crore
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The ED alleges that the company neither delivered the residential units nor refunded the amounts deposited by homebuyers and instead misappropriated the upfront booking and loan amounts. | Photo Credit: SPECIAL ARRANGEMENT
The Directorate of Enforcement (ED), Bengaluru Zonal Office, has arrested S. Vasudevan, CMD and promoter of Ozone Urbana Infra Developers Pvt. Ltd., in connection with a money laundering investigation into alleged fraud of ₹927.22 crore involving homebuyers.
Vasudevan was arrested on September 30 under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. The ED stated that its investigation was initiated based on multiple FIRs filed at various police stations in Bengaluru, which allege cheating by impersonation and cheating through dishonest inducement of property delivery against the firm and its promoters.
The Central Bureau of Investigation (CBI) had also registered an FIR against the firm on the directions of the Supreme Court, the ED said in a press note.
The company allegedly failed to complete its projects within the stipulated time and did not hand over possession of apartments to homebuyers, according to the ED.
The agency alleged that the company had induced customers by offering to pay pre-construction EMIs until possession was handed over but subsequently failed to fulfill its commitments. The ED also alleged that the company neither delivered the residential units nor refunded the amounts deposited by homebuyers and instead misappropriated the upfront booking and loan amounts.
The investigation by the ED revealed that Ozone Urbana Infra Developers Pvt. Ltd., along with Vasudevan, allegedly defrauded homebuyers of ₹927.22 crore.
The ED had conducted searches on various premises on August 1, 2025, and seized documents. Based on its investigation, the agency had issued a provisional attachment order on October 4, 2025, attaching immovable properties valued at ₹423.378 crore.
The ED said a parallel investigation had also been initiated based on three FIRs registered by the CBI against Ozone Infra Developers Pvt. Ltd., Ozone Realtors Pvt. Ltd., and Ozone Projects Pvt. Ltd. for allegedly defrauding homebuyers.
Vasudevan is a common director in all three companies, the ED said.
According to the agency, the arrest was made based on material gathered during the investigation. It aims to further probe the alleged generation, diversion, layering, and utilisation of proceeds of crime, including the role of the promoter, group entities, and other persons through whom the funds were allegedly routed.
The accused was produced before a Special Court in Bengaluru, on October 1. The court has granted the ED 14 days’ custody for further investigation.
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