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Bengaluru buyers association files FIR against real estate developer for fraud worth ₹3300 crore
The FIR mentions that the Ozone Group promoters had promised to finish the project over the last 12 years, but only 49% has been completed
Bengaluru Crime Branch has registered a First Information Report (FIR) against the Ozone Group promoters following a complaint filed by the Resident Welfare Association (RWA) of Ozone Urbana Township for defrauding buyers of over ₹3300 crore, according to a copy of the FIR accessed by HT.com.
The FIR dated December 9 mentions that the company collected over ₹1500 crore through mortgage loans in the buyers’ name through various banks and also directly collected ₹1800 crore from the buyers, totalling ₹3300 crore.
The housing project is located in Kannamangala village in North Bengaluru and comprises 1,800 apartments of various dimensions spread across 45 acres. The project was launched in 2012, and the developer was expected to deliver the units by 2017.
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The FIR mentions that the promoters have promised to finish the project over the last 12 years, but only 49% has been completed. Despite multiple orders by Karnataka RERA (RERA), the company has failed to refund the amount collected from the buyers.
Advocate Reynold D'souza, who represented the homebuyer, said," Initially, more than 150 people were involved in the case. However, we now have the residential welfare association as part of the FIR. Currently, the RWA represents 1800 apartments in the project."
“The case has been booked following orders issued by the Additional Commissioner of Police (Crime). The accused has mortgaged the project for a sum of ₹1,500 crore without informing the buyers. He has also collected ₹1,800 crore from the home buyers. In total, the home buyers have been cheated of ₹3,300 crore. The money has been siphoned to other projects and misused,” said D'souza.
The back story
Located near North Bengaluru, the project was launched in 2012. Each apartment costs over ₹1-1.5 crore. However, according to D'souza, it's been delayed for more than 12 years.
"The promoter has promised to complete the project for the last 12 years. However, only 49 per cent of progress has been made. An investigation is required, and the homebuyers have been ordered to meet the senior officials," the FIR mentioned.
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The FIR further mentioned that the company's promoters and officials have provided advertisements online and through other apps. The rest of the investigation is ongoing.
A query sent to Ozone Group did not elicit a response.
Karnataka developers owe buyers ₹486 crore in refund for delayed projects
According to a KRERA document dated August 2024, the Karnataka developers owe homebuyers more than ₹486 crore in refunds for delayed apartment delivery.
As of January 31, 2024, the state revenue department had completed 138 recoveries, and 1110 recoveries remain to be concluded.
The total money to be recovered by the state's revenue department has almost doubled from ₹245 crore in July 2022.
Till July 2022, of the 683 recovery orders passed by the KRERA, money was collected from builders in 84 cases. The state government has collected money in only 54 cases between July 2022 and January 2024.
The document also mentioned that the Ozone group owes homebuyers about ₹93 crore in refunds.
