The Directorate of Enforcement (ED), Bengaluru Zonal Office, arrested S. Vasudevan, Chairman and Managing Director (CMD) and promoter of Ozone Urbana Infra Developers Pvt. Ltd., on 30 September 2026 in connection with a money laundering probe under the Prevention of Money Laundering Act (PMLA), 2002. According to an official ED statement, Vasudevan was produced before the Special Court (PMLA), Bengaluru, on 1 October and remanded to 14 days' judicial custody for further investigation. The agency alleges that Vasudevan and his companies defrauded homebuyers of ₹927.22 crore by collecting booking amounts without delivering promised apartments.

Background and FIRs

The ED's investigation was triggered by multiple First Information Reports (FIRs) registered under Sections 419, 420, and 120B of the Indian Penal Code at various police stations across Bengaluru against Ozone Urbana Infra Developers Pvt. Ltd. and its promoters. A separate FIR was also registered by the Central Bureau of Investigation (CBI), EO-I, New Delhi, on the directions of the Supreme Court of India, underscoring the gravity of the alleged fraud and the judicial attention it has attracted.

The ED conducted searches at 17 premises on 1 August 2025 under the PMLA and seized several incriminating documents, according to its statement. The investigation spans three related entities — Ozone Urbana Infra Developers Pvt. Ltd., Ozone Realtors Pvt. Ltd., and Ozone Projects Pvt. Ltd. — with Vasudevan serving as a common director across all three companies.

How Homebuyers Were Allegedly Defrauded

According to the ED, Ozone Urbana Infra Developers collected upfront booking amounts from homebuyers while offering to pay pre-EMIs until possession of the flats was handed over. The company allegedly failed to complete construction projects, did not deliver residential units to buyers, and neither refunded the deposited amounts nor provided alternative remedies. The agency alleges the funds were misappropriated and the total amount defrauded stands at ₹927.22 crore.

This comes amid a wider national pattern of real estate developers collecting large sums from buyers without completing projects, a trend that prompted legislative intervention through the Real Estate (Regulation and Development) Act (RERA). The Supreme Court's direction to the CBI to register an FIR signals that conventional regulatory mechanisms were deemed insufficient in this case.

Attachment Orders and Asset Trail

Prior to the arrest, the ED had issued a Provisional Attachment Order on 4 October 2025, provisionally attaching immovable properties valued at ₹423.75 crore under the PMLA. The agency stated that Vasudevan's arrest is aimed at probing the generation, diversion, layering, and utilisation of proceeds of crime, including the roles of group entities and other individuals through whom funds were allegedly routed. Investigators are examining the entire financial trail across the three Ozone group companies.

What Happens Next

With Vasudevan now in 14 days' judicial custody, the ED is expected to carry out detailed financial interrogation to map the alleged money trail. Parallel investigations under the PMLA, based on CBI FIRs, are also under way against the broader Ozone group. The fate of thousands of homebuyers awaiting possession of their apartments — or refunds — will likely hinge on the outcome of both the criminal proceedings and any court-ordered asset liquidation. Further investigation is ongoing, according to the ED.