Ex-Lodha Developers director detained in major laundering probe

The Enforcement Directorate has formally placed Rajendra Lodha, a former board member of real estate firm Lodha Developers Ltd, under arrest in connection with allegations that he diverted and laundered corporate funds worth about Rs 85 crore, authorities said on Thursday. He was produced before a special court hearing cases under the Prevention of Money Laundering Act, where the agency secured custody to pursue its probe. Lodha, who had been in judicial custody since his arrest by the Crime Branch last year, will face a fresh remand before the ED court as the investigation intensifies. Investigators allege Lodha, appointed to the company board in 2015 with authority limited to land acquisitions, abused his position by orchestrating a complex web of unauthorised transactions that siphoned funds and assets from the developer. The Enforcement Directorate’s case stems from a cheating and forgery complaint filed with Mumbai police under the Bharatiya Nyaya Sanhita, which provided the predicate offence for the money-laundering inquiry. The probe suggests that Lodha, in collusion with his son Sahil and several associates, manipulated company land and transferable development rights through shell entities and front companies. One scheme of alleged manipulation involved purchasing parcels of land through intermediaries and later reselling them to the company at inflated prices, creating financial losses estimated at more than Rs 85 crore. Investigators also outline the use of fabricated memoranda of understanding to designate false possession holders, enabling the accused to divert company funds under the guise of legitimate land transactions. In one instance cited by authorities, a 4,150-square-metre plot in Panvel was reportedly sold to an entity linked to Lodha for a fraction of its market value, resulting in a direct loss of around Rs 9.5 crore to the developer. The Enforcement Directorate’s action follows months of coordinated inquiry involving searches and forensic analysis. Teams previously executed search operations at multiple locations across Mumbai and the wider metropolitan region to trace the alleged proceeds of crime and associated assets. These raids, conducted in the latter part of last year, targeted residential and business premises of individuals connected to the case as well as intermediary firms suspected of facilitating fraudulent transfers. Law enforcement documents indicate that the probe has unearthed evidence of cash withdrawals, benami transactions, and the misuse of corporate resources for private benefit, augmenting the central agency’s view that the alleged laundering extended beyond routine bookkeeping irregularities. Officials have emphasised that the investigation remains active, with further custodial interrogation intended to identify additional participants and recover assets linked to the alleged illicit gains. The case traces its origins to a complaint lodged by Lodha Developers — which has since evolved into one of India’s largest property firms — after its internal audits flagged a series of suspicious transactions that could not be readily explained through normal corporate activity. Following the filing of the police complaint in 2025, the Crime Branch initiated its own investigation under charges including fraud, criminal breach of trust and conspiracy, leading to the initial detention of Lodha and others. Statements obtained by police during the early stages of the inquiry, including witness accounts, have been cited as instrumental in mapping the pattern of alleged diversion of funds. One individual who worked in Lodha’s employ reportedly provided details of large cash movements, while digital evidence extracted from electronic devices is said to have helped establish links between the transactions and the accused associates. Industry observers noted that the unfolding of events has prompted renewed scrutiny of governance and oversight mechanisms within major real estate developers. Corporate governance experts point out that the case underscores the importance of transparent land acquisition processes and robust checks on executive authority to safeguard shareholder interests. While Lodha Developers has not publicly commented on the specifics of the case, companies facing internal fraud investigations often review compliance systems to reassure investors and regulatory bodies. The article Ex-Lodha Developers director detained in major laundering probe appeared first on Arabian Post.

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The Enforcement Directorate has formally placed Rajendra Lodha, a former board member of real estate firm Lodha Developers Ltd, under arrest in connection with allegations that he diverted and laundered corporate funds worth about Rs 85 crore, authorities said on Thursday. He was produced before a special court hearing cases under the Prevention of Money Laundering Act, where the agency secured custody to pursue its probe. Lodha, who had been in judicial custody since his arrest by the Crime Branch last year, will face a fresh remand before the ED court as the investigation intensifies.

Investigators allege Lodha, appointed to the company board in 2015 with authority limited to land acquisitions, abused his position by orchestrating a complex web of unauthorised transactions that siphoned funds and assets from the developer. The Enforcement Directorate’s case stems from a cheating and forgery complaint filed with Mumbai police under the Bharatiya Nyaya Sanhita, which provided the predicate offence for the money-laundering inquiry.

The probe suggests that Lodha, in collusion with his son Sahil and several associates, manipulated company land and transferable development rights through shell entities and front companies. One scheme of alleged manipulation involved purchasing parcels of land through intermediaries and later reselling them to the company at inflated prices, creating financial losses estimated at more than Rs 85 crore.

Investigators also outline the use of fabricated memoranda of understanding to designate false possession holders, enabling the accused to divert company funds under the guise of legitimate land transactions. In one instance cited by authorities, a 4,150-square-metre plot in Panvel was reportedly sold to an entity linked to Lodha for a fraction of its market value, resulting in a direct loss of around Rs 9.5 crore to the developer.

The Enforcement Directorate’s action follows months of coordinated inquiry involving searches and forensic analysis. Teams previously executed search operations at multiple locations across Mumbai and the wider metropolitan region to trace the alleged proceeds of crime and associated assets. These raids, conducted in the latter part of last year, targeted residential and business premises of individuals connected to the case as well as intermediary firms suspected of facilitating fraudulent transfers.

Law enforcement documents indicate that the probe has unearthed evidence of cash withdrawals, benami transactions, and the misuse of corporate resources for private benefit, augmenting the central agency’s view that the alleged laundering extended beyond routine bookkeeping irregularities. Officials have emphasised that the investigation remains active, with further custodial interrogation intended to identify additional participants and recover assets linked to the alleged illicit gains.

The case traces its origins to a complaint lodged by Lodha Developers — which has since evolved into one of India’s largest property firms — after its internal audits flagged a series of suspicious transactions that could not be readily explained through normal corporate activity. Following the filing of the police complaint in 2025, the Crime Branch initiated its own investigation under charges including fraud, criminal breach of trust and conspiracy, leading to the initial detention of Lodha and others.

Statements obtained by police during the early stages of the inquiry, including witness accounts, have been cited as instrumental in mapping the pattern of alleged diversion of funds. One individual who worked in Lodha’s employ reportedly provided details of large cash movements, while digital evidence extracted from electronic devices is said to have helped establish links between the transactions and the accused associates.

Industry observers noted that the unfolding of events has prompted renewed scrutiny of governance and oversight mechanisms within major real estate developers. Corporate governance experts point out that the case underscores the importance of transparent land acquisition processes and robust checks on executive authority to safeguard shareholder interests. While Lodha Developers has not publicly commented on the specifics of the case, companies facing internal fraud investigations often review compliance systems to reassure investors and regulatory bodies.

The article Ex-Lodha Developers director detained in major laundering probe appeared first on Arabian Post.