'Fraud' with home buyers: ED attaches assets worth Rs 423 cr in Karnataka

Unsold flats and lands worth more than Rs 423 crore of the promoters of a Karnataka-based real estate firm were attached under the anti-money laundering law on Saturday in a case linked to alleged duping of homebuyers, the Enforcement Directorate (ED) said.

The action has been taken against Bengaluru-based Ozone Urbana Infra Developers and its main promoter S Vadudevan.

A provisional order has been issued under the Prevention of Money Laundering Act (PMLA) to attach the unsold stock in the Avenue (92 flats) and Aqua 2 projects (13 flats) of the company apart from 4.5 acres of commercial land and personal properties of Vasudevan, the ED said in a statement.

The attachment also includes the assets of Vasudevan's wife -- 179 acres of land in Kannehalli village, Mudigere (Chikkamagaluru district). The total value of these properties is Rs 423.38 crore, the agency said.

The money laundering case stems from a CBI FIR that was registered on the directions of the Supreme Court, it said.

The ED had conducted searches in this case in August.

The company and Vasudevan ''defrauded'' home buyers to the tune of Rs 927.22 crore and ''did not'' deliver possession of apartments/units against the said money, thereby dishonestly retaining and diverting the funds, the ED alleged.

''The accused diverted the funds to other group entities and associated individuals, including Vasudevan himself, and his family members. ''Therefore, the company and Vasudevan generated proceeds of crime of Rs 927.22 crore and routed the same through various entities and used for the purpose other than the funds actually meant for, ie, construction and development of realty projects,'' the federal probe agency said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)