Former Lodha Developers Director Rajendra Lodha Remanded to ED Custody in Rs 85 Crore Fraud Case
In a significant development in a high-profile financial fraud case, former director of Lodha Developers, Rajendra Lodha, was produced before the special Prevention of Money Laundering Act (PMLA) court in Mumbai on Friday. The court has remanded him to Enforcement Directorate (ED) custody until February 20, following his arrest on Thursday in connection with a money laundering case linked to an alleged Rs 85-crore fraud.
Details of the Alleged Financial Irregularities
Seeking custody of the accused, special public prosecutor Sunil Gonsalves, representing the ED, presented detailed submissions before the court. The prosecution alleged that Rajendra Lodha abused his position as a director of Lodha Developers, conspiring with his son and other associates between 2021 and 2025 to execute unauthorized transactions.
The central allegations include:
- The sale of company-owned land at significantly undervalued rates.
- The disposal of Transferable Development Rights (TDRs) at prices far below market value.
- These actions reportedly caused a wrongful loss to the company exceeding Rs 85 crore.
ED's Position on Authority and Responsibilities
The Enforcement Directorate clarified Lodha's official capacity and limitations within the company structure. According to the agency's statement, Rajendra Lodha was authorized solely to purchase land on behalf of Lodha Developers. He was never vested with the powers to sell land, dispose of company assets, or alienate TDRs.
"Although he was designated as a promoter in April 2021 after acquiring a nominal shareholding, no additional authority was conferred upon him," the ED emphasized in its submission, highlighting the alleged breach of trust and corporate governance norms.
Legal Proceedings and Next Steps
The remand to ED custody until February 20 allows the investigative agency to conduct further interrogation and gather additional evidence in this complex money laundering case. The proceedings underscore the ongoing scrutiny of corporate financial practices and enforcement actions against alleged economic offenses in India's real estate sector.
This case adds to a series of high-profile investigations by the Enforcement Directorate targeting financial irregularities in corporate entities, with the real estate industry remaining a focal point for such probes due to the substantial capital involved and potential for complex transactional manipulations.
