The Directorate of Enforcement (ED) carried out extensive search operations across 14 locations in the Mumbai region on Wednesday as part of its money-laundering probe against Rajendra Narpatmal Lodha, former director of Lodha Developers, and others. The searches, conducted under the Prevention of Money Laundering Act (PMLA), 2002, resulted in the seizure and freezing of movable assets valued at approximately Rs 59 crore, including cash, bank balances, and fixed deposits. Officials also recovered incriminating documents, digital devices, and details of immovable assets worth several crores.
The money-laundering investigation stems from a series of FIRs registered by the Mumbai Police against Lodha and several associates under various sections of the Bharatiya Nyaya Sanhita (BNS) 2023. The complaints allege cheating, abuse of official position, unauthorized sale of assets, and creation of forged documents, which reportedly caused wrongful losses exceeding Rs 100 crore to Lodha Developers Ltd (LDL), a publicly listed real estate company.
According to the ED, preliminary findings indicate that Rajendra Narpatmal Lodha played a central role in diverting and siphoning funds and assets belonging to Lodha Developers Ltd. Investigators allege that Lodha orchestrated unauthorized sales and transfers of company-owned immovable properties at undervalued rates to proxy individuals and entities linked to him, without approval from the company’s Board of Directors.
The agency further stated that Lodha was allegedly involved in fabricating Memorandums of Understanding (MoUs) for land purchases at highly inflated values. The inflated portions of these transactions were then purportedly siphoned off in cash through the sellers, resulting in misappropriation of corporate funds. The investigation suggests that Lodha, along with related persons, associates, and connected entities, accumulated assets through these practices, causing significant financial losses to Lodha Developers Ltd.
The ED confirmed that further investigation is underway to trace additional assets and identify the full network of individuals and entities involved. Officials indicated that more searches and financial scrutiny are likely in the coming weeks as the probe progresses.
At the company’s request, Rajendra Lodha resigned from all positions on August 17 after its Ethics Committee reviewed his conduct. The case arose when Lodha Developers filed a complaint alleging that Rajendra Lodha, his son Sahil Lodha, and several associates were involved in large-scale fraud, asset misappropriation, and criminal breach of trust.
