In a major development in one of Bengaluru’s high-profile real estate fraud investigations, the Enforcement Directorate (ED) has arrested S. Vasudevan, Chairman and Managing Director (CMD) and promoter of Ozone Urbana Infra Developers Private Limited, in connection with an alleged ₹927.22 crore fraud involving homebuyers.
According to ED’s official statement, Vasudevan was arrested by the agency’s Bengaluru Zonal Office under the Prevention of Money Laundering Act (PMLA) on September 30. He was taken to the Special PMLA Court in Bengaluru, where he was remanded to 14 days in ED custody for further questioning and investigation.
The case arises from several First Information Reports (FIRs) filed against Ozone Urbana Infra Developers Pvt. Ltd. and its promoters in different police stations in Bengaluru. They claim cheating, forgery, criminal conspiracy and other kinds of crimes. The CBI also filed an FIR against the company and its owners in Delhi Economic Offences Wing (EoO Wing) following the Supreme Court’s direction.
The company lured prospective homebuyers with lucrative offers to invest in residential flats, investigators say. In particular, one of the main promises made to customers was that the developer would pay pre-EMIs on behalf of buyers until possession of the flats was handed over. With the confidence of these promises, hundreds of buyers booked apartments and poured huge cash into the project.
However, as per the ED, the company did not complete the housing project on the allocated timeline. Accordingly, many buyers did not get their flats as promised and did not receive refunds of their money. The company and its promoters collected ₹927.22 crore from homebuyers and diverted and misused the funds through various channels.
ED, Bengaluru has arrested S. Vasudevan, CMD and promoter of M/s Ozone Urbana Infra Developers Pvt. Ltd., under Section 19 of the PMLA, 2002, in connection with defrauding homebuyers an ongoing money laundering investigation. Following his production before the Special Court… pic.twitter.com/uTVZcTQbCJ
— ED (@dir_ed) October 2, 2026
The ED investigation has revealed alleged financial irregularities in the movement of funds across various entities. Homebuyers' money was transferred to different companies and individuals instead of being used for the completion of the residential project, investigators say. The agency is now mapping out the flow of funds and how the alleged proceeds of crime were generated, transferred, layered and used.
This is not the first action the ED has taken in the case. On August 1, 2025, Bengaluru Zonal Office officers conducted extensive searches at some of the company and its promoters' locations. During those searches, investigators seized documents and records that are believed to be relevant to the ongoing money laundering investigation.
The ED then provisionally attached immovable assets worth around ₹423.378 crore under the PMLA on October 4, 2025. These properties were suspected proceeds of crime associated with the alleged fraud involving homebuyers.
The investigation has also expanded beyond Ozone Urbana Infra Developers Pvt. Ltd. The ED is investigating the role of other companies in the Ozone Group, including Ozone Infra Developers Private Limited, Ozone Realtors Private Limited and Ozone Projects Private Limited. The CBI has filed three separate FIRs against these companies as part of its investigation.
Indeed, S. Vasudevan serves as a common director of these companies and has been leading the investigation. The ED is at this point looking for the entire trail of funds and whether other individuals or corporate entities were involved in the alleged diversion of money collected from homebuyers.
The case remains under active investigation, and more action could follow from investigators who are still questioning financial transactions and company records and evidence.
