The Central Crime Branch (CCB) of Bengaluru police has registered a case against Ozone Urbana Infra Developers Private Limited, alongside several banks and financial institutions, for allegedly defrauding homebuyers of a staggering Rs 3,300 crore.
According to the industry sources, the scale of the alleged fraud is unprecedented in Bengaluru’s real estate history. ”The investigative agencies are working on tracing the misappropriated funds and identifying the full extent of the conspiracy,” said one of the source.
The complaint was filed by Errol John Noronha, president of the Ozone Urbana Buyers Welfare Association, who accused the developers of securing loans in buyers’ names, misusing funds, and failing to deliver housing projects as promised.
According to the FIR, the developers obtained Rs 1,500 crore in mortgage loans and diverted an additional Rs 1,800 crore from homebuyer payments and related transactions. These funds were meant for the one of the largest township project— Ozone Urbana township project in Devanahalli, launched in 2012. Over a decade later, the project is only 49% complete, far from its promised 2017 deadline.
“We were shown glossy brochures and given assurances that our EMIs would be taken care of until the project was finished. Instead, we have been left with unfinished homes and mounting debts,” said a buyer.
The FIR names several leading financial institutions, including HDFC, Indiabulls Housing Finance, Bank of Baroda, and Piramal Capital and Housing Finance, accusing them of complicity in the alleged fraud.
The charges also include criminal breach of trust, cheating, criminal conspiracy, and violations under the Karnataka Protection of Interest of Depositors in Financial Establishments Act.
“Despite Karnataka RERA mandating 70% of funds to be held in an escrow account, the developers flouted these rules. It’s clear there was no intention to deliver on their promises,” said another affected buyer.
The suspects include Managing Director Vasudevan Satyamoorthy, his wife Priya Vasudevan, and key executives Satyamoorthy Sai Prasad and Durbhakula Vamsi Sai. Investigators are currently tracing the diverted funds and preparing to take legal action
“The developers and their associates are suspected of siphoning off the money to other entities, leaving buyers and financiers in the lurch. The agency is expanding the probe to uncover all parties involved,” said one of the earlier source.
The case has sent shockwaves through Bengaluru’s real estate sector, with buyers demanding stricter oversight and immediate justice for the financial and emotional toll they have endured.
