The Enforcement Directorate (ED) launched raids on Friday targeting 10 premises connected to the promoters of the Ozone Urbania Housing Township in Bengaluru’s Devanahalli Taluk, and Mumbai. The raids are a response to a multitude of complaints from homebuyers regarding the delayed project and the lack of refunds, even after multiple orders from RERA-Karnataka.
This is the second time ED has investigated real estate promoters in Bengaluru. In 2022, Mantri Developers Private Limited faced similar action, with properties worth Rs 3,000 crore provisionally attached.
ED officials confirmed the searches were conducted on a builder group and key management personnel in Bengaluru and Mumbai. The investigation is ongoing under Section 17 of the Prevention of Money Laundering Act (PMLA), led by the ED’s Bengaluru zonal office.
Officials stated that the integrated township, originally planned for completion in 2018, was only 49% finished by 2024. The company has failed to deliver the project or refund buyers’ investments.
The accused company is alleged to have cheated customers through various means, including false promises about EMI payments and substantial discounts for upfront payments. Furthermore, the builder offered buyback schemes and other incentives to attract buyers.
It is alleged that the company’s directors defrauded buyers out of hundreds of crores and misused the funds. Multiple FIRs against the company and its promoters have triggered the PMLA investigation.