The Enforcement Directorate (ED) conducted raids on Friday across 10 locations linked to the promoters of the Ozone Urbania Housing Township in Bengaluru and Mumbai, responding to accusations of fraud. These actions follow numerous complaints from thousands of homebuyers concerning significant delays in project completion and the failure to provide refunds, despite directives from RERA-Karnataka.
This marks the second instance of ED scrutiny on real estate promoters in Bengaluru. Previously, in 2022, the ED had raided and provisionally attached properties worth Rs 3,000 crore associated with Mantri Developers Private Limited.
Officials confirmed that the ED’s searches targeted a builder group and key management personnel. The investigation, under Section 17 of the Prevention of Money Laundering Act (PMLA), is being handled by the ED’s Bengaluru zonal office.
According to officials, the integrated township project, initially slated for completion in 2018, had only reached 49% completion by 2024. The company has failed to deliver the project and has not returned the buyers’ money.
Allegations suggest that the company and its key management cheated customers through deceptive practices, including promises of EMI payments to banks on behalf of homebuyers and offering substantial discounts for full upfront payments. Furthermore, the builder is accused of inducing buyers through buyback schemes and similar offers.
It is alleged that the company’s directors defrauded buyers of hundreds of crores and misappropriated funds. Multiple FIRs have been filed against the company and its promoters, which necessitated the PMLA investigation.