Ozone Urbana Homebuyers Withdraw KRERA Cases After 13 Years of Delays and Turn to High Court for Justice

Ozone Urbana, a residential project launched over 13 years ago near Bengaluru Airport, remains incomplete, leaving homebuyers, including senior citizens, in financial distress. Despite multiple complaints to the Karnataka Real Estate Regulatory Authority (KRERA), buyers have now withdrawn their cases, citing ineffective enforcement of rulings and prolonged legal struggles.

Background of the Ozone Urbana Project

Located in Kannamangala village in North Bengaluru, the Ozone Urbana township was envisioned as a premium residential project spanning 45 acres with 1,800 apartments of various configurations. The project was launched in 2012, with possession originally scheduled for 2016-2017. However, repeated construction delays left homebuyers uncertain about their investments. Over the years, many have struggled with financial and emotional stress, as the project remains unfinished.

The delay has particularly impacted senior citizens who invested their life savings, expecting timely possession. Many have faced health issues, financial constraints, and prolonged legal battles, forcing them to consider alternative housing arrangements.

Legal Battle and Frustration Among Homebuyers

Homebuyers have engaged in multiple legal efforts to secure compensation and possession. In the last decade, several complaints were filed with KRERA, resulting in revenue recovery orders against the developer. However, enforcement has been weak, leaving buyers with little recourse. In March 2025, buyers collectively withdrew all seven cases they had filed with KRERA, calling the body ineffective in its ability to enforce rulings. Many are now planning to approach the Karnataka High Court.

Several homebuyers had planned their post-retirement life in this township but are now facing financial and emotional strain. Some had invested large sums expecting timely delivery, only to see repeated delays with no clear resolution. Compensation orders have been issued in some cases, but implementation has remained weak, leading to further distress. Many have relocated elsewhere while continuing their legal fight.

The prolonged delays have significantly affected senior citizens who had invested their retirement savings in the project. Many had planned to settle into their new homes comfortably but are now struggling with health issues and financial uncertainty. Some had to break their fixed deposits and savings to invest in these homes, only to be left without a resolution for years.

In some cases, elderly homebuyers have had to take additional financial burdens, including renting alternative accommodation or making EMI payments on stalled projects. Their families, too, have been impacted, with children stepping in to provide financial support despite having their own commitments. Several homebuyers are now contemplating further legal action, knowing that it will add to their financial strain but feeling they have no alternative.

Challenges in KRERA's Enforcement and Legal Recommendations

Legal experts believe that KRERA lacks the enforcement powers needed to compel developers to comply with orders. Though compensation orders have been issued, execution depends on the revenue department, which is already burdened with multiple responsibilities.

Legal professionals suggest appointing judicial members within KRERA to enhance its authority, similar to consumer courts and the National Company Law Tribunal (NCLT). Strengthening KRERA’s legal framework could allow it to take proactive action against non-compliant developers rather than waiting for homebuyers to file repeated complaints.

Another recommendation includes appointing a special officer to assist the District Commissioner in following up on recovery orders. Given the extensive workload of the DC, a dedicated official could oversee the recovery process and ensure compliance. There are also calls for stricter measures such as freezing funds held in escrow accounts until developers fulfill their obligations.

Lawyers further recommend regular physical verifications and surprise site visits by KRERA officials to monitor project progress and developer compliance. For new projects being registered, past compliance records should be verified, and additional safeguards should be put in place for developers with pending obligations.

With KRERA proving ineffective in enforcing its rulings, many homebuyers are exploring alternative legal avenues. Several have filed police complaints, while others have approached the National Human Rights Commission. The Karnataka High Court remains their primary hope for a resolution.

Industry experts argue that this case highlights broader systemic issues in real estate regulation. Delayed projects have affected thousands of buyers across Bengaluru, and regulatory bodies must strengthen their enforcement mechanisms to prevent similar situations in the future.

As homebuyers await a response from the builder and KRERA, the lack of timely intervention raises concerns about investor confidence in Bengaluru’s real estate market. Legal reforms and stricter accountability measures will be necessary to ensure that regulatory authorities serve their intended purpose.