The charge sheet was filed before a Special Court in Bengaluru and is reportedly the 17th charge sheet filed in the wider builder–banker nexus investigation being conducted under directions issued by the Supreme Court.

Builder Accused of Misleading Homebuyers

According to the CBI, the developer and its director allegedly acted as part of a criminal conspiracy and induced homebuyers and investors through false assurances, misleading representations and deceptive promises.

The agency alleged that these actions enabled the accused to obtain financial gains while causing losses to buyers.

The CBI is also investigating another 32 cases involving various developers and unidentified officials of financial institutions over alleged cheating and diversion of homebuyer funds.

What Happened in October 2025?

The case had already attracted action from the Enforcement Directorate in October 2025.

On October 4, 2025, the ED provisionally attached properties valued at approximately ₹423.38 crore belonging to Ozone Urbana Infra Developers, its promoter and related persons under the Prevention of Money Laundering Act.

The ED alleged that the developer had promised to pay pre-construction EMIs until possession but failed to complete and deliver the apartments as committed. Buyers were allegedly neither given possession nor refunded their booking and loan amounts.

The agency further alleged that approximately ₹927.22 crore collected from homebuyers was dishonestly retained or diverted to group entities, associated individuals and family members of the promoter.

The attached properties included:

• 92 unsold flats in the Avenue project
• 13 unsold flats in Aqua 2
• Around 4.5 acres of commercial land
• Approximately 179 acres of land in Mudigere belonging to the promoter and his wife

What Are the Current Charges?

As per the charge sheet filed by the CBI, the accused are currently facing charges under provisions of the Indian Penal Code, including:

• Section 120B – Criminal conspiracy
• Section 420 – Cheating and dishonestly inducing delivery of property
• Section 406 – Criminal breach of trust

In addition, the Enforcement Directorate proceedings under the Prevention of Money Laundering Act (PMLA) continue in parallel, focusing on the alleged laundering and diversion of funds collected from homebuyers.

Is the CBI Charge Sheet a New Case?

The July 2026 charge sheet is not an entirely unrelated matter. It appears to be a later stage in the broader investigation that had already resulted in the ED’s property attachment in October 2025.

However, the two agencies are handling different aspects of the allegations. The CBI is pursuing the criminal case relating to alleged cheating, conspiracy and breach of trust, while the ED is investigating the alleged laundering and diversion of the proceeds of crime.

The filing of a charge sheet does not amount to conviction. The allegations must be proved before the court, and the accused are entitled to defend themselves during the trial.

Buyer Awareness: Verify the Developer Before You Commit

Before purchasing a flat or entering into a joint development agreement, buyers and landowners should carefully verify the developer’s track record, completed projects, financial stability, legal disputes, RERA compliance, approval status and history of project delivery. Attractive pricing or strong marketing should never replace proper due diligence.

Landowners considering joint development must also examine the proposed revenue-sharing terms, construction obligations, timelines, guarantees and exit protections before signing any agreement.

Landowners can explore joint development with Verified.RealEstate without making an upfront financial investment. The team manages feasibility analysis, approvals, development, marketing and sales, while the landowner receives a pre-agreed fixed payout protected through binding agreements and regular project updates.