Ozone Urbana MD S Vasudevan remanded in ED custody in Rs 927-cr fraud case

Bengaluru: A special court under the Prevention of Money Laundering Act (PMLA) in Bengaluru has remanded S Vasudevan, chairman and managing director and promoter of Ozone Urbana Infra Developers Pvt. Ltd., to 14 days of Enforcement Directorate (ED) custody in a money laundering case linked to an alleged fraud on homebuyers.

The ED's Bengaluru Zonal Office arrested Vasudevan on September 30 under Section 19 of the PMLA and produced him before the Special Court (PMLA) on October 1. The court granted 14 days of ED custody, according to an official statement issued by the agency on Friday.

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The probe is based on multiple FIRs filed by Bengaluru police against Ozone Urbana Infra Developers and its promoters, as well as a separate CBI case registered by the agency's Economic Offences-I unit in New Delhi following directions from the Supreme Court.

According to the ED, the company failed to complete its housing project on time and did not hand over apartments to buyers despite collecting money from them. The agency alleged that the developer had promised to pay pre-construction EMIs until possession was handed over but later failed to meet those commitments.

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The ED said its investigation found that Vasudevan and the company allegedly cheated homebuyers of about Rs 927.22 crore by collecting money for apartments that were not delivered and diverting the funds. Homebuyers were neither given possession of their units nor refunded their deposits, the agency alleged.

The agency said it conducted searches in August 2025 and seized incriminating documents. It had also provisionally attached immovable properties worth Rs 423.37 crore under the PMLA based on evidence gathered during the investigation.

According to the ED statement, parallel investigations are underway against Ozone Infra Developers Pvt. Ltd., Ozone Realtors Pvt. Ltd. and Ozone Projects Pvt. Ltd. in connection with three CBI cases. Vasudevan is a common director in all three companies under investigation.

The arrest was made to further investigate the alleged generation, diversion and use of proceeds of crime, as well as the role of various group entities and individuals through whom the funds were allegedly routed, the ED said.