MUMBAI (India CSR): In a major financial crime crackdown, the Enforcement Directorate (ED) on Tuesday launched searches across several locations in Mumbai linked to former Lodha Developers whole-time director Rajendra Lodha and his associates, intensifying investigations into an alleged embezzlement and land fraud racket exceeding Rs. 100 crore.
The searches come days after Lodha’s arrest by the Mumbai Crime Branch for allegedly siphoning off company funds, engineering fraudulent land deals, and manipulating the sale of Transferable Development Rights (TDR) during his tenure at Lodha Developers, one of the country’s largest real estate companies.
Fraud Allegedly Spanned a Decade Across Multiple Cities
According to the FIR registered at NM Joshi Marg Police Station, Rajendra Lodha — a distant cousin of CEO Abhishek Lodha — conspired with his son Sahil Lodha and other associates between September 2013 and August 2025. Investigators allege they diverted company money through bogus land purchases in Thane, Kalyan, and Panvel, undervalued sales, and sham transactions designed to benefit firms secretly controlled by the Lodha family.
Officials say Lodha executed a series of fraudulent transactions, including a fake land purchase of Rs. 3.03 crore in Panvel by adjusting payments against a luxury flat to mask irregularities. Another deal involved the resale of land the company already owned, causing losses of Rs. 2.65 crore. The FIR also details fraudulent land sales in Narhen village and Ambernath valued at over Rs. 27 crore, and a suspect deal with Usha Enterprises that allegedly cost Lodha Developers more than ₹10 crore.
Shell Firms, Cash Transfers, and Suspicious Ties
Investigators claim that Usha Enterprises was effectively controlled by Rajendra and Sahil Lodha, despite being operated through proxies. Between April 2022 and May 2023, nearly Rs. 17 crore was routed to the company via cash and bank transactions. Another land parcel worth Rs. 9 crore was reportedly sold for just Rs. 2.75 crore to NBP Edutech Infratech LLP, a firm where Sahil Lodha was allegedly a founding partner.
The FIR further accuses Lodha of selling 7.15 lakh sq. ft. of TDR at undervalued prices, pocketing the cash difference through secret arrangements. In yet another alleged diversion mechanism, inflated commissions were paid to fake brokers, including Rs. 2 crore to one Rajaram Patil, which was later returned to Lodha in cash, according to investigators.
ED Tracing Money Trail, Shell Entities
The ED’s ongoing searches are aimed at identifying assets acquired through suspected proceeds of crime, uncovering layered transactions, and mapping the complex network of shell companies involved.
Crime Branch officials arresting Lodha earlier this week said he had resigned from Lodha Developers after refusing to disclose personal assets during an internal audit — a refusal that raised further suspicion. He remains in custody as ED probes possible offences under the Prevention of Money Laundering Act (PMLA).
Company Confirms Cooperation
A spokesperson for Lodha Developers said, “The law is taking its course in the case registered by us against Rajendra Lodha. We are fully supporting the investigation.”
More Irregularities Expected to Surface
Senior officials privy to the case said the fraud uncovered so far may represent “only the tip of the iceberg,” as forensic teams continue analyzing historic land acquisitions, TDR transactions, and payments to intermediaries. More arrests and wider financial scrutiny are expected as the investigation deepens.
The ED’s action signals one of the biggest probes into corporate financial misconduct in Mumbai’s real estate sector in recent years, with the potential to expose long-running patterns of internal fraud and systemic misuse of development rights.
(India CSR)
