Bengaluru police book builder, banks in Rs 3,300 crore housing fraud

Besides Ozone, Housing Development Finance Corporation Ltd, Indiabulls Housing Finance Ltd, Bank of Baroda, and Piramal Capital and Housing Finance Limited are some of the other accused. Charges under Indian Penal Code Sections 406 (criminal breach of trust), 409 (criminal breach of trust by a banker or agent), 420 (cheating), 120B (criminal conspiracy), and Section 9 of The Karnataka Protection of Interest Depositors in Financial Establishment Act have been invoked.

The Ozone Urbana township project, launched in 2012 in Devanahalli, was slated for completion by 2017. However, as per the complaint, only 49 per cent of the project has been completed to date. Buyers allege that the developers used aggressive marketing campaigns, both online and offline, to promise that EMIs would be paid by the developers until the project’s completion.

Despite directives from the Karnataka Real Estate Regulatory Authority (K-RERA) to deposit 70 per cent of the funds into an escrow account, the developers allegedly failed to comply. The complainant also highlighted the developers’ failure to respond to regulatory orders and their continued neglect of buyer grievances.

Named suspects include Ozone Urbana managing director Vasudevan Satyamoorthy, his wife Priya Vasudevan, Satyamoorthy Sai Prasad, Durbhakula Vamsi Sai, Srinivasan Gopalan, and Seewosagar Nemchand.

The case reached the Karnataka High Court, with a writ petition filed by the buyers association on August 12 seeking justice for affected homebuyers.

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