Bengaluru real estate: Ozone Urbana homebuyers withdraw cases from ‘toothless’ KRERA, plan to approach High Court

Homebuyers of the Ozone Urbana project in Bengaluru have withdrawn all seven cases filed with the Karnataka Real Estate Regulatory Authority (KRERA) after facing prolonged delays in securing relief for their stalled apartments. They charged KRERA with being ‘completely ineffective and toothless’ in delivering justice.

“With no resolution in sight, they decided to step away from the regulatory process,” said one homebuyer who wished to remain anonymous.

According to a KRERA order dated March 18, accessed by HT.com, Ozone Urbana Buyers Welfare Association withdrew all the cases pending in KRERA. K-RERA chairman Rakesh Singh and member G R Reddy issued the order permitting the buyers to withdraw all the cases.

Also Read: Bengaluru real estate: Homebuyer approaches police after developer sells his flat to a new buyer

“The RERA Authority remains toothless, allowing developers ample time to sell or mortgage their assets without consequences. So far, 214 execution orders with revenue recovery certificates (orders to recover homebuyers’ money in stuck projects) have been issued, yet not a single one has been enforced,” said a homebuyer.

“Homebuyers are spending more money in the High Court to seek relief, as RERA remains ineffective. With over 590 cases already registered and another 800 expected soon, the process offers little hope for resolution,” the buyer added.

The buyers plan to move the Karnataka High Court to recover their money in the delayed Ozone Urbana project. “We have decided to approach the High Court for justice and start from scratch,” the buyer said.

Ozone Urbana Developers has a maximum of 590 cases filed against it in the state. K-RERA has issued 214 execution orders for revenue recovery, but the buyer alleged that not a single order had been honoured by the builder.

Queries have been emailed to KRERA and the builder. The story will be updated if a response is received.

The Ozone Urbana housing project is located in Kannamangala village in North Bengaluru and comprises 1,800 apartments of various dimensions spread across 45 acres. The project was launched in 2012, and the developer was expected to deliver the units by 2017.

Also Read: Karnataka real estate developers owe homebuyers around ₹667 crore in refunds for delayed projects

Ozone Group owes ₹93 crores in refund to Karnataka buyers

The Ozone Group owes homebuyers ₹93.6 crore in refunds for their investments in stuck projects, according to the KRERA document dated August 2024.

Karnataka real estate developers owe homebuyers around ₹667 crore as arefund for delays in thedelivery of apartments as of December 31, 2024, a Karnataka Real Estate Regulatory Authority (KRERA) document accessed by HT.com showed.

Bengaluru Crime Branch had registered a First Information Report (FIR) against the Ozone Group promoters following a complaint filed by the Resident Welfare Association (RWA) of Ozone Urbana Township for defrauding buyers of over ₹3300 crore, as HT.com reported earlier.

The FIR dated December 9, 2024, mentions that the company collected over ₹1500 crore through mortgage loans in the buyers’ names through various banks and also directly collected ₹1800 crore from the buyers, totalling ₹3300 crore.