The Enforcement Directorate (ED) has attached assets valued at over ₹423 crore linked to a Karnataka-based real estate company and its promoters in connection with an alleged home buyer fraud. The action, taken under the Prevention of Money Laundering Act (PMLA), targets unsold flats, commercial land, and personal properties of the company’s principal promoter, S. Vadudevan, and his family.
The attached assets include 92 flats in the Avenue project and 13 flats in the Aqua 2 project, both developed by Bengaluru-based Ozone Urbana Infra Developers. In addition, the ED has attached 4.5 acres of commercial land and personal properties belonging to Vadudevan. The agency’s order also covers 179 acres of land in Kannehalli village, Mudigere, Chikkamagaluru district, owned by Vadudevan’s wife.
According to the federal probe agency, the alleged fraud stems from a case registered by the Central Bureau of Investigation (CBI) on the directions of the Supreme Court. The ED conducted searches in the matter in August before moving to attach the properties. The case alleges that the promoters did not deliver possession of apartments and units against buyers’ payments, thereby diverting funds meant for construction and development.
The agency noted that funds were allegedly routed through multiple group entities and used for purposes other than the construction projects, generating proceeds of crime amounting to ₹927.22 crore. The ED’s action aims to secure the attached properties and prevent further diversion of funds, while the investigation continues.
Unsold flats and lands are now under provisional attachment, a measure intended to safeguard assets during the investigation. Authorities emphasized that the move ensures that the assets remain available for potential restitution to affected home buyers once legal proceedings advance.
Ozone Urbana Infra Developers, along with Vadudevan, is alleged to have retained and diverted buyer funds dishonestly, breaching contractual obligations and violating financial regulations. By targeting both company and family-owned properties, the ED seeks to address the scale and extent of alleged fund misappropriation.
The agency has invited further submissions from stakeholders and is expected to continue investigations into the diversion of funds across associated entities. The attachment of such high-value properties highlights the seriousness of the alleged fraud and its potential impact on investors and home buyers in the state.
As the investigation unfolds, authorities aim to ensure transparency and accountability within the real estate sector. Legal experts note that such actions serve as a deterrent against similar misconduct by developers in other parts of the country, reinforcing regulatory oversight and financial discipline in housing projects.
Image source- enforcementdirectorate.gov.in
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