Ozone Urbana RWA Files Complaint with Central Crime Branch Bengaluru Over Project Delays

The Central Crime Branch (CCB) in Bengaluru has registered a First Information Report (FIR) against the promoters of the Ozone Group, following a complaint filed by the Resident Welfare Association (RWA) of Ozone Urbana Township. The case centers around allegations of delays in project completion and financial discrepancies, with the RWA claiming that ₹3,300 crore was collected from homebuyers and through loans.

Background of the Project

Ozone Urbana Township, located in Kannamangala village in North Bengaluru, is a large-scale housing project spanning 45 acres. The development includes 1,800 apartments of various sizes, with prices starting at ₹1 crore. Launched in 2012, the project was initially scheduled for completion by 2017. However, over 12 years later, only 49% of the work has been completed, leaving buyers waiting for their promised homes.

Key Allegations in the Complaint

The complaint filed by the RWA outlines two primary concerns: delays in project completion and financial mismanagement. According to the FIR, the developers secured over ₹1,500 crore in loans by mortgaging the project in the name of buyers without their knowledge. Additionally, the company collected ₹1,800 crore directly from buyers as part of the sale agreements. Despite these significant collections, the project remains incomplete, and no refunds have been issued to affected buyers, even after multiple orders by the Karnataka Real Estate Regulatory Authority (KRERA).

Legal Steps Taken

Advocate Reynold D'Souza, representing the RWA, stated that the case initially involved more than 150 individual buyers. However, the association now represents the collective interests of all 1,800 apartment owners. The case was registered following orders from the Additional Commissioner of Police (Crime), who directed the authorities to investigate the matter further.

D'Souza emphasized that the funds collected for the project were diverted to other purposes. He added that the RWA is actively working with senior officials to expedite the investigation and ensure that buyers' concerns are addressed.

Challenges Faced by Buyers

Homebuyers have faced numerous challenges due to the prolonged delay. Many buyers had planned to occupy their apartments years ago, only to face uncertainty and financial strain due to the ongoing situation. While some buyers have sought legal recourse individually, others have joined the collective effort led by the RWA to hold the developers accountable.

Status of Refunds and Recoveries in Karnataka

The issue with the Ozone Group is part of a broader challenge faced by homebuyers in Karnataka. According to a KRERA report dated August 2024, developers across the state owe buyers over ₹486 crore in refunds for delayed projects. Despite recovery orders issued by KRERA, progress has been slow. Between July 2022 and January 2024, the state government managed to collect refunds in only 54 cases, while over 1,100 recovery orders remain pending.

For the Ozone Group specifically, KRERA documents reveal that the company owes buyers approximately ₹93 crore in refunds. However, no substantial progress has been made in resolving these claims, leaving buyers in a difficult position.

The RWA has urged buyers to stay informed about the developments and participate in discussions with authorities. It has also called for increased accountability from developers and a streamlined process for resolving disputes and refund claims. The association is advocating for a more robust mechanism to enforce KRERA orders and ensure that buyers’ rights are protected.

To resolve the issues, homebuyers are relying on collective action through the Resident Welfare Association (RWA), which has strengthened their case. Authorities need to ensure strict enforcement of regulatory orders, timely refunds, and accountability from developers. Strengthening financial oversight and implementing better monitoring mechanisms for housing projects can help prevent such situations in the future. Buyers are hopeful for a swift investigation and a fair resolution to their grievances.

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