ED seizes Rs 59 Cr in raids on Lodha Developers’ Ex-Official in Rs 100 Cr fraud Case

The Enforcement Directorate’s (ED) Mumbai Zonal Office on Friday conducted search operations at 14 locations in the Mumbai region as part of an ongoing money laundering probe against Rajendra Narpatmal Lodha, former director of Lodha Developers Ltd, and others.

An ED official stated that the search operations led to the seizure and freezing of movable assets amounting to Rs 59 crore in the form of cash, bank balances, and fixed deposits. Various other incriminating documents, digital devices, and details of immovable assets worth several crores were also recovered.

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The ED initiated its investigation based on FIRs registered by Mumbai Police against Rajendra Narpatmal Lodha and others under various sections of the Bharatiya Nyaya Sanhita (BNS). The charges include cheating, abuse of official position, unauthorised sale of assets, and the creation of false documents, which allegedly caused a wrongful loss of over Rs 100 crore to the publicly listed entity, Lodha Developers Ltd.

The ED’s investigation revealed that Rajendra Narpatmal Lodha was involved in diverting and siphoning off funds and assets from Lodha Developers Ltd. This was done through the unauthorised sale and transfer of company-owned immovable properties at undervalued prices to proxy entities connected to him, all without the approval of the company’s Board of Directors. He was also involved in fabricating Memoranda of Understanding (MoUs) to inflate land purchase prices, subsequently siphoning the inflated amount as cash through the sellers and misappropriating company funds.

“The investigation reveals that Rajendra Lodha, along with his associates and related entities, accumulated assets through these fraudulent activities, causing a wrongful loss to Lodha Developers Ltd,” the official said.

Further investigation into the matter is ongoing.