ED recovers Rs 59 crore in raids linked to Lodha Developers fraud case

The Enforcement Directorate (ED) has seized and frozen movable assets worth approximately Rs 59 crore after conducting extensive search operations across 14 locations in Mumbai in connection with its ongoing money laundering investigation against Rajendra Narpatmal Lodha and his associates, the agency said on Friday.

The searches, carried out on Wednesday under the Prevention of Money Laundering Act (PMLA), 2002, resulted in the recovery of large quantities of cash, bank balances, fixed deposits, and several documents deemed incriminating. Investigators also confiscated digital devices and details of immovable assets allegedly linked to the fraud, amounting to several crores.

The probe follows FIRs filed by Mumbai Police against Lodha and others under various provisions of the Bharatiya Nyaya Sanhita (BNS), 2023. The FIRs accuse them of cheating, abuse of official position, unauthorised sale of assets, and fabrication of documents, allegedly causing wrongful losses exceeding Rs 100 crore to Lodha Developers Ltd (LDL), a publicly listed real estate company.

The ED said its investigation has uncovered a complex web of alleged financial misconduct.

According to the agency, Lodha allegedly diverted and siphoned funds and assets of LDL by selling or transferring company-owned immovable properties at undervalued prices to proxy entities and connected individuals without the approval of the Board of Directors.

Investigators also found that Lodha and his associates fabricated Memorandums of Understanding (MoUs) for land purchases at artificially inflated prices. The inflated amounts were allegedly siphoned off in cash through the original sellers, enabling the systematic diversion of company funds for personal gain.

“Investigation reveals that Rajendra Lodha, along with his related persons, associates, and entities, accumulated assets through these fraudulent activities, causing wrongful loss to M/s Lodha Developers Ltd,” the ED said in a press note.

With IANS inputs