Bengaluru, Sept 24: The High Court has refused to quash the case registered by the Enforcement Directorate (ED) against ‘Ozone Urbana Infra Developers Private Limited’ regarding allegations of a multi-crore fraud involving funds collected under the pretext of developing the ‘Ozone Urbana’ township near Kempegowda International Airport.
Delay in Project Completion:
A bench led by Justice M. Nagaprasanna dismissed the petition filed by the company’s Managing Director, Vasudevan Sathyamurthy, seeking to quash the proceedings against him. However, the court quashed the proceedings initiated against the company under the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 (KPID).
Over 180 homebuyers had filed complaints at various police stations in Bengaluru in 2019, alleging that the company had delayed the completion of the ‘Ozone Urbana’ township project and failed to allot flats as promised in 2015-16. Meanwhile, the ED had registered a case under the Prevention of Money Laundering Act (PMLA) on October 4, 2025. The company had filed an application seeking to quash the proceedings.
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Immovable assets worth Rs. 423.38 crore belonging to the company attached.
Dismissing the application, the Bench noted that even though the money reached the developer, the doors of the homes remain unopened for the buyers; the complainants are left only with the burden of EMI payments. During the investigation, the ED attached immovable assets worth Rs.423.38 crore belonging to the company. The court observed that it is inappropriate to halt the investigation at an initial stage when there are allegations involving large-scale financial transactions and the rights of homebuyers.
Background of the case:
Under an agreement with a real estate firm, the project was supposed to be completed and the flats handed over to buyers by 2015–16. However, alleging that the company deliberately delayed the project and cheated them by failing to deliver possession of the flats, over 180 aggrieved buyers filed complaints at various police stations in Bengaluru in 2019.
Details of the FIR and Accused:
Based on complaints from aggrieved buyers, cases have been registered under Sections 419 (cheating by personation), 420 (cheating and dishonesty), and 120B (criminal conspiracy) of the Indian Penal Code (IPC), 1860.
Police FIRs have been registered against the company’s CEO Srinivasa Gopalan; directors Vasudevan Sathyamurthy, Priya Vasudevan, Rajeev Bhandari, Shivusagar Nemichan, Darbukula Vamshi, S. Bhaskaran, and Greta; as well as officials from HDFC Bank.
ED Intervention and Money Laundering Investigation:
The Enforcement Directorate (ED) has directly intervened in the case following suspicions regarding the misappropriation of funds collected from buyers and potential money laundering. ED officials have intensified the investigation after registering an ECIR under the Prevention of Money Laundering Act (PMLA), 2002, on October 4, 2025.