ED arrests ex-Lodha Developers director in Rs 100 cr fraud probe

A 100 crore hole in a real estate giant’s books just landed its former director in custody under a money laundering probe.

Rajendra Narpatmal Lodha arrest

• Enforcement Directorate picked up Rajendra Narpatmal Lodha under PMLA.
• Lodha Developers allegedly suffered losses of over 100 crore.
• Mumbai Police filed FIRs under Bharatiya Nyaya Sanhita, 2023.
• The Special PMLA Court in Mumbai granted eight days of ED custody.

Alleged diversion of company assets

• ED claims Lodha offloaded properties at undervalued rates.
• Proxy entities and linked individuals reportedly received the assets.
• Board approval was allegedly bypassed during these transfers.
• Investigators say company funds were rerouted through shady deals.

Forged deals and cash siphoning

• Memorandums for land buys were allegedly fabricated at inflated prices.
• Sellers allegedly handed back pumped-up amounts in cash.
• Associates and related entities reportedly amassed assets.
• The agency described the transactions as fraudulent and damaging.

Searches and asset seizure

• November 12 raids covered 14 Mumbai-region locations.
• About 88 crore in cash and deposits were seized or frozen.
• Digital devices and property records were taken into custody.
• Further investigation into the matter is ongoing.