Thousands of overseas Indians allege fraud, stalled construction, and systemic failure in the Ozone Urbana project
For thousands of Non-Resident Indians (NRIs), buying property in India is more than just an investment—it’s about returning home, caring for elderly parents, and creating a permanent base. But for many buyers of the Ozone Urbana township in Devanahalli, near Bengaluru, that dream has soured into years of legal struggle, financial strain, and emotional turmoil, reported indiatoday.in.
Noronha, who invested in two apartments worth over ₹1 crore each, recovered the principal for one through Lok Adalat—but without interest. The second apartment remains undelivered, and his money is still with the builder.
The buyers claim the project, aggressively marketed in 2015 with promises like a 240-bed hospital within the township, was plagued with delays, misleading assurances, and financial coercion. Banks allegedly stopped EMI disbursements midway, forcing buyers to resume payments themselves.
“It’s heartbreaking. There are ex-Air Force, Navy, and Army officers in tears. These are people who fought for our country. Their money has been stolen, and no one is held accountable,” says NRI buyer Errol John Noronha.
Thousands impacted, hundreds in court
According to Sathies Kumar, legal advisor to the Ozone Urbana Buyers’ Association, over 2,000 homebuyers are affected. More than 500–600 writ petitions have been filed, with new victims surfacing whenever the issue gets media attention.
A 2021 Karnataka High Court order granted Noronha and 117 others a stay on EMI payments, but buyers allege the developer has not complied and banks continue to attempt debits. Some buyers even received arrest warrants for default despite the stay.
Regulators under scrutiny
Buyers accuse the Karnataka Real Estate Regulatory Authority (RERA) of failing to halt property sales in the stalled project. “The builder is still selling apartments and plots. People are paying for properties that don’t exist,” Noronha alleged.
Police reportedly refused to file FIRs, with court stays appearing within 24 hours of attempts to register cases. While there are reports of Enforcement Directorate (ED) involvement, Central Bureau of Investigation (CBI) action remains unclear.
Human toll of a stalled dream
The alleged scam has devastated retired defence personnel, cancer patients, and others who poured life savings into the project. Many remain trapped in a legal and bureaucratic maze, with no home, no refund, and no closure.
Noronha says the builder tried to coax him into withdrawing cases with partial refunds, but he refused: “I’m standing up for others. I won’t be bought off.”
As hearings continue in the Karnataka High Court, the case highlights the urgent need for stronger real estate regulation, stricter enforcement of RERA, and faster dispute resolution to protect homebuyers from prolonged suffering.
