Bengaluru’s Central Crime Branch (CCB) has opened a case against Ozone Urbana Infra Developers Private Limited and several banks for allegedly cheating homebuyers out of Rs 3,300 crore.
Sources in the industry say this fraud is the largest seen in Bengaluru’s real estate sector. Investigators are trying to track down the stolen money and uncover the full details of the scheme, according to one source.
The complaint was brought forward by Errol John Noronha, who leads the Ozone Urbana Buyers Welfare Association. He accused the developers of taking loans in buyers’ names, misusing the money, and not completing housing projects as promised.
The FIR states that the developers took Rs 1,500 crore in mortgage loans and misused another Rs 1,800 crore from homebuyer payments. This money was intended for the Ozone Urbana township project in Devanahalli, which began in 2012. Ten years later, only 49% of the project is finished, missing the promised deadline of 2017.
One buyer expressed disappointment, saying, “We were shown attractive brochures and promised that our EMIs would be covered until the project was done. Instead, we’re left with incomplete homes and growing debts.”
The FIR names several major financial institutions, such as HDFC, Indiabulls Housing Finance, Bank of Baroda, and Piramal Capital and Housing Finance, claiming they were involved in the alleged fraud.
The accusations include serious offenses like criminal breach of trust, cheating, criminal conspiracy, and breaking the rules of the Karnataka Protection of Interest of Depositors in Financial Establishments Act.
An affected buyer stated that even though Karnataka RERA requires developers to keep 70% of funds in an escrow account, the developers ignored these rules. This shows they never meant to fulfill their commitments.
The suspects are Managing Director Vasudevan Satyamoorthy, his wife Priya Vasudevan, and key executives Satyamoorthy Sai Prasad and Durbhakula Vamsi Sai. Investigators are following the trail of the misused funds and preparing for legal steps.
One source mentioned that the developers and their associates are believed to have redirected the money to other entities, leaving buyers and financiers in trouble. The agency is broadening the investigation to find all those involved.
This case has shocked Bengaluru’s real estate market, with buyers calling for stricter rules and immediate justice for the financial and emotional damage they have faced.
