Rajendra Lodha Arrested in ₹100 Crore Money Laundering Probe

Introduction

The Enforcement Directorate (ED) has arrested Rajendra Narpat Mal Lodha, a former director of the publicly listed real estate firm Lodha Developers Limited, in a significant money laundering investigation. The case involves allegations of causing a financial loss of over ₹100 crore to the company through a series of fraudulent transactions. Following his arrest on February 12, 2026, a special court in Mumbai remanded Lodha to eight days of ED custody for further questioning.

Details of the Arrest and Custody

According to officials from the ED's Mumbai Zonal Office, Rajendra Lodha was taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. He was produced before a special PMLA court on February 13, 2026. The court granted the agency's request for custody, allowing investigators to interrogate him regarding the complex financial trail and the alleged diversion of company funds. The arrest marks a major development in an investigation that has been active for several months.

Foundation of the Investigation

The ED's money laundering probe is predicated on a First Information Report (FIR) previously registered by the Mumbai Police. The police case, filed in September 2025, named Lodha and several others under various sections of the Bharatiya Nyaya Sanhita (BNS), 2023. The initial complaint detailed allegations of cheating, criminal breach of trust, abuse of official position, unauthorized sale of company assets, and the creation of forged documents. The Mumbai Police Crime Branch had arrested Lodha in connection with this case in September 2025, and he had been in judicial custody since.

Core Allegations of Fraud

Investigators allege that Lodha, who joined the company in 2015 with responsibilities in land acquisition, overstepped his authority to orchestrate a series of illicit deals. The primary accusations revolve around the systematic diversion of company funds and assets for personal gain. The ED claims that Lodha, along with his relatives and associates, acquired assets through fraudulent means, causing significant financial damage to Lodha Developers Limited.

Methods of Fund Diversion

The probe has uncovered several methods allegedly used to siphon funds. One key allegation is the unauthorized sale of the company's immovable properties at prices far below their market value. These assets were allegedly transferred to proxy entities and individuals connected to Lodha without the required approval from the company's board of directors. For instance, a parcel of company land in Panvel, valued at nearly ₹10 crore, was purportedly sold to a front entity for just ₹48 lakh, resulting in a direct loss of approximately ₹9.5 crore.

Fabricated Agreements and Inflated Prices

Another major component of the alleged fraud involves the fabrication of Memorandums of Understanding (MoUs) for land purchases. The ED contends that these MoUs were used to inflate land acquisition prices. After the transaction, a portion of the inflated amount was allegedly taken back in cash from the sellers, leading to the misappropriation of company funds. The agency also claims that Lodha used front entities, such as Usha Properties and Shreeram Realties, to buy land and then resell it to Lodha Developers at grossly inflated prices.

Previous Enforcement Actions

This arrest follows extensive groundwork by the ED. On November 12, 2025, the agency conducted coordinated searches at 14 locations across the Mumbai region as part of the PMLA investigation. During these raids, authorities seized and froze movable assets worth approximately ₹88 crore. These assets included cash, bank balances, and fixed deposits. Additionally, numerous documents, digital devices, and records related to immovable properties valued at several crores were recovered, which the agency considers crucial evidence.

Rajendra Lodha's Role and Resignation

Rajendra Lodha was appointed as a director at Lodha Developers in 2015, primarily overseeing land acquisition. He resigned from the company in August 2025 after an internal ethics review flagged irregularities in his conduct. At the time, the company had clarified that he was a distant relative of its Managing Director and CEO. The current investigation focuses on actions taken during his tenure as a director.

Next Steps in the Probe

With Rajendra Lodha in custody, the ED will focus on tracing the complete money trail, identifying other potential beneficiaries, and examining the evidence collected during the searches. The investigation will continue to unravel the network of individuals and entities allegedly involved in the scheme. The findings from the interrogation will be crucial for the agency as it prepares to file a formal complaint in court. The case highlights ongoing efforts by federal agencies to address corporate fraud and money laundering within the real estate sector.