MUMBAI: The Enforcement Directorate (ED) has formally arrested Rajendra Lodha, a former director of Lodha Developers Limited, in connection with an alleged money laundering case involving ₹85 crore.
The ED’s case is built on accusations of cheating and forgery reported by the Mumbai police under the Bharatiya Nyaya Sanhita (BNS).
Lodha was previously arrested in a related crime branch case back in September and has remained in judicial custody.
During the investigation, the ED presented him to a special court overseeing cases filed under the Prevention of Money Laundering Act (PMLA), where he was officially placed under arrest.
He is set to appear before the ED court on Friday for his initial remand.
According to the ED, Lodha, who became a director of the company in 2015, exceeded his limited authority—which was primarily for land acquisition—by engaging in unauthorized transactions.
He allegedly collaborated with his son, Sahil Lodha, and several associates to generate, conceal, and launder illicit proceeds, resulting in significant losses for the company.
The ED claims he misdirected company funds through fake possession holders and falsified MoUs, withdrew cash unlawfully, and sold company land and Transferable Development Rights (TDRs) at undervalued prices.
Lodha also purportedly facilitated transactions in names of others (benami transactions), siphoned funds via controlled entities, and misused company assets for personal gain as well as for related entities. He allegedly enabled fraudulent allocations of residential flats through forged agreements, benefiting his associates unlawfully.
The ED estimates that Lodha’s actions have caused overall losses exceeding ₹85 crore to Lodha Developers Ltd.
Among the tactics cited by the ED, one instance shows Lodha circumventing company protocol to buy land through front companies like Usha Properties and Shreeram Realties, which were later sold back to Lodha Developers at significantly inflated prices.
For example, land worth approximately ₹10 crore in Panvel was sold to a front company for only ₹48 lakh, resulting in a loss of ₹9.50 crore to the firm.
The ED also uncovered a structured scheme involving bogus possession claims through forged documents.
Additionally, land acquired in 2013 in the name of an employee, Mangesh Puranik, was fraudulently transferred to Lodha’s associates after Puranik’s death before being sold back to the company at a considerable profit.
