CHENNAI: The Metrozone project in Koyambedu is now under investigation by the Central Bureau of Investigation (CBI) for alleged misconduct involving the subvention scheme and fraudulent actions toward homebuyers through a bank-developer collusion.
The CBI’s economic offences wing in Delhi has filed a case against Ozone Projects Pvt Ltd, which is behind the Metrozone project, along with its promoters, directors, and unnamed officials from Axis Bank Ltd and Axis Finance Ltd, interpreting the situation as fraud and corruption as directed by the Supreme Court.
The FIR indicates that Ozone Projects’ directors, currently undergoing the Corporate Insolvency Resolution Process (CIRP), allegedly conspired with banks and financial institutions to fraudulently secure home loans under the names of prospective buyers, breaching RBI and National Housing Bank regulations. They defaulted on pre-EMIs, contradicting the stipulations of their tripartite agreements. According to the subvention scheme, the developer is supposed to cover the EMI until possession of the property, which purportedly did not occur, leading to significant financial distress for buyers.
The Metrozone project, launched in 2015, promised world-class amenities and timely completion. However, flats began to be allotted only in 2021 with the expectation of possession by 2024.
Homebuyers sought legal recourse, and their collective petition became part of a larger case regarding bank-developer collusion, which the Supreme Court adjudicated. In March, the court ordered the CBI to register cases linked to 20 petitions, for which investigations were already ongoing, and to proceed with inquiries into an additional 25 cases without preliminary examination.
The court also instructed the CBI to enlist the state’s police for support in the investigation, emphasizing the obligation to adhere to this order. Besides the Chennai case, the CBI is also pursuing investigations against the Ozone group for two other projects in Bengaluru.
