Sun Feb 09 01:30:00 UTC 2025: ## Karnataka RERA Orders Impleading of Directors in Ozone Urbana Refund Case

**Bengaluru, February 9, 2025** – The Karnataka Real Estate Regulatory Authority (K-RERA) has ordered the impleading of seven directors of Ozone Urbana Infra Developers Pvt. Ltd. in an ongoing execution case, a significant move aimed at protecting homebuyers. The company has repeatedly failed to comply with refund orders totaling over ₹170 crore issued to homebuyers Vinod Kumar and Parul Chaudhary.

Kumar and Chaudhary, who booked a flat in Ozone Urban Township in 2015 and paid 90% of the cost, approached K-RERA in 2020 after the builder failed to deliver. A refund order was granted in 2022, but execution proved difficult due to the company’s reported lack of assets. Subsequently, the Central Crime Branch (CCB) registered a cheating case against Ozone Urbana, its officials, and private bank officials in December 2024, alleging loan diversion.

The High Court quashed tahsildar-issued auction notices on the directors’ personal properties, prompting K-RERA to re-examine the case. Recognizing a prima facie case of cheating and the company’s insolvency, K-RERA invoked the legal doctrine of “lifting the corporate veil,” holding the directors personally responsible for the company’s debts.

K-RERA Chairman Rakesh Singh stated the decision was made after careful consideration of the case’s merits, emphasizing the authority’s commitment to protecting homebuyers. Kumar lauded the ruling, highlighting its potential to deter developers from evading financial liabilities. Efforts to reach the directors for comment were unsuccessful.

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