S. Vasudevan. Photograph: Ozone Group.
Bengaluru: The Enforcement Directorate has arrested Ozone Urbana promoter S. Vasudevan in a money-laundering investigation into an alleged ₹927.22-crore fraud involving homebuyers who, according to the agency, received neither possession of their homes nor refunds of the money they paid.
Vasudevan, chairman and managing director of Ozone Urbana Infra Developers Pvt. Ltd., was arrested on September 30 under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. A Special Court (PMLA) in Bengaluru granted the ED 14 days’ custody after he was produced before it on October 1, the agency said.
The arrest follows an earlier provisional attachment of immovable properties valued at ₹423.378 crore. The ED said the custody would help it investigate how the alleged proceeds of crime were generated, diverted, layered and used, including the roles of the promoter, group entities and people through whom funds were routed.
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 an ongoing money laundering investigation involving homebuyers.
ED (@dir_ed), October 2, 2026
Pre-construction EMI promise under scrutiny
According to the ED, the company failed to complete construction on time and hand over possession to customers. It allegedly attracted homebuyers by offering to pay pre-construction EMIs until their flats were handed over, but failed to honour that commitment.
The agency alleged that the builder neither delivered the residential units nor refunded buyers’ deposits, and misappropriated the upfront booking amounts and loans. It said its investigation found that Ozone Urbana Infra Developers and Vasudevan, its main promoter, had defrauded homebuyers of ₹927.22 crore by retaining and diverting funds without providing the apartments or units for which the payments were made.
Police FIRs, searches and property attachment
The ED investigation began on the basis of multiple FIRs registered at Bengaluru police stations under Sections 419, 420 and 120B of the Indian Penal Code against the company and its promoters. The agency said the CBI’s EO-I unit in New Delhi also registered an FIR on the Supreme Court’s directions.
The ED’s Bengaluru Zonal Office conducted searches under Section 17 of the PMLA on August 1, 2025, and seized documents from various premises. Based on its investigation and the material gathered, it issued a provisional attachment order on October 4, 2025, covering immovable properties worth ₹423.378 crore.
Parallel investigation covers three group companies
A parallel PMLA investigation has been initiated on the basis of three separate CBI FIRs against Ozone Infra Developers Pvt. Ltd., Ozone Realtors Pvt. Ltd. and Ozone Projects Pvt. Ltd. over alleged fraud involving homebuyers, the ED said.
Vasudevan is a common director in all three companies under investigation. The ED said further investigation is in progress.
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