ED arrests former Lodha Developers director in Rs 100 crore money laundering probe

The Enforcement Directorate (ED) has arrested Rajendra Narpatmal Lodha, a former director of Lodha Developers, in connection with an alleged money laundering case involving losses exceeding Rs 100 crore to the real estate firm.

Lodha was taken into custody on Thursday under the Prevention of Money Laundering Act (PMLA). On Friday, a Special PMLA Court in Mumbai remanded him to eight days of ED custody to enable further investigation.

Allegations of fund diversion and asset sales

According to the ED, the arrest stems from a money laundering inquiry initiated on the basis of FIRs registered by the Mumbai Police. The complaints cite provisions of the Bharatiya Nyaya Sanhita, 2023, and allege offences including cheating, abuse of position, unauthorised sale of company assets and fabrication of documents.

Investigators claim Lodha caused wrongful losses of more than Rs 100 crore to the company by diverting funds and disposing of immovable properties without board approval. The agency alleges that company-owned properties were transferred at undervalued rates to proxy entities and individuals linked to him.

The ED further contends that memorandums of understanding were fabricated for land acquisitions at inflated prices. The allegedly inflated sums were then siphoned off in cash through sellers, resulting in the misappropriation of company funds.

In a statement, the agency said Lodha and his associates accumulated assets through what it described as fraudulent transactions that inflicted significant financial damage on the firm.

As part of the investigation, the ED carried out searches on 12 November last year at 14 locations across the Mumbai region. During the operation, assets worth approximately Rs 88 crore — including cash, bank balances and fixed deposits — were seized or frozen.

Officials also recovered documents, digital devices and details relating to immovable properties worth several crores, which they say have yielded crucial evidence.

The investigation remains ongoing.