The Enforcement Directorate (ED) conducted raids on Friday at 10 locations connected to the promoters of the Ozone Urbania Housing Township, situated in Devanahalli Taluk, Bengaluru, and Mumbai, due to allegations of defrauding. This action follows numerous complaints from thousands of homebuyers, who have been facing considerable project delays and have not received refunds, despite several orders from RERA-Karnataka.
This represents the second instance of ED scrutiny on real estate promoters in Bengaluru. Previously, in 2022, the ED raided and provisionally attached properties worth Rs 3,000 crore, linked to Mantri Developers Private Limited.
Officials revealed that the Enforcement Directorate (ED) searched 10 premises associated with a builder group and its key management personnel in both Bengaluru and Mumbai.
The searches are ongoing. The ED’s Bengaluru zonal office is leading the search operations under Section 17 of the Prevention of Money Laundering Act (PMLA).
According to officials, the integrated township project was originally intended for delivery in 2018, but by 2024, only 49% of the project was complete. The company failed to hand over the project and has not reimbursed the buyers.
It is alleged that the accused company, along with its key management staff, deceived numerous unsuspecting customers through various fraudulent practices.
According to the ED, the firm and its key management personnel deceived various unassuming customers by promising to pay EMIs to the banks against the loans taken by the homebuyers from the financial institutions on behalf of the buyers until the project’s completion and by promising several buyers significant discounts if they paid the total amount in advance against the bookings.
It is also alleged that the builder induced buyers of units, flats, and apartments in the project through buyback schemes, 2X-schemes, and other similar offers.
It is claimed that the company’s directors defrauded its buyers of hundreds of crores and misappropriated the funds.
Officials added that there are multiple FIRs against the company and its promoters, which prompted the PMLA investigation.