The Enforcement Directorate (ED) apprehended Rajendra Lodha, a former director of Mumbai’s Lodha Developers, on Thursday as part of an investigation into a money laundering case linked to a purported scam involving Rs 85 crores.

The arrest comes after Lodha Developers, a prominent player in India’s real estate sector, filed a complaint highlighting financial discrepancies and fraudulent practices that surfaced last year. Rajendra Lodha had previously been taken into custody by Mumbai Police.

Details of the Allegations

According to officials, Rajendra Lodha, along with several accomplices, stands accused of unlawfully channeling substantial funds from the company via intricate financial maneuvers. The case was initially brought to light in September 2025 when Lodha Developers lodged a criminal complaint against Rajendra Lodha and others, which led to an investigation by the Mumbai Crime Branch’s property cell.

Investigative Findings

Subsequent to the complaint, Rajendra Lodha and multiple co-defendants were arrested on suspicions of fraud, cheating, criminal breach of trust, and conspiracy. Investigators have discovered numerous alleged instances of embezzlement, involving both cash and gold.

Reports indicate that Lodha orchestrated a scheme to misappropriate company funds through fictitious land transactions, resale of previously acquired land, and undervalued corporate assets. Evidence suggests that significant cash transactions were conducted under the guise of land deals, leading to extensive financial losses for Lodha Developers.

Witness Testimonies and Evidence

Police documents and testimonies from witnesses have been instrumental in strengthening the case. Seven individuals have given statements before a magistrate, while another 40 have provided information to the police. A pivotal witness, identified as Rajendra Lodha’s driver, claimed to have collected Rs 1 crore from two different locations in Mumbai, which was subsequently handed over to Lodha. The driver stated that this cash was later deposited into his accounts.

Asset Misappropriation Allegations

Moreover, it has been alleged that Rajendra sold a significant plot owned by Lodha Developers to a company controlled by his son at a drastically reduced price. Investigators also recovered digital evidence from Rajendra Lodha’s computer and mobile devices, uncovering documents linked to substantial cash transactions involving other implicated parties, according to the ED.

Additionally, certain land previously held in the name of an ex-employee was sold by Rajendra Lodha, who allegedly set up various shell companies to facilitate the flow of funds.

Seizures and Ongoing Investigations

In a concurrent development, CCTV footage captured Rajendra’s brother, Deepak Lodha, removing three large bags from his residence. Authorities later confiscated materials from Deepak’s home, including documents pertaining to several companies and cash ledgers, which are currently under examination as part of the ongoing investigation.

Judicial Custody and Company’s Response

The ED had previously executed searches at numerous locations connected to Rajendra Lodha and recorded statements from various suspects. On Thursday, with judicial approval, ED officials took custody of Rajendra Lodha, who remained in judicial custody related to the earlier Crime Branch case.

He is set to be presented before the Special PMLA Court for remand on Friday. A spokesperson for Lodha Developers remarked that, “The law is taking its course” in connection with the case against Rajendra Lodha, affirming the company’s commitment to cooperating with investigators. The company management characterized the alleged fraud as “only the tip of the iceberg,” signaling that internal inquiries are still underway.

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