ED Seizes Rs 271 Crore Assets in Lodha Developers Fraud Case
The Directorate of Enforcement (ED), Mumbai Zonal Office, has taken significant action by provisionally attaching immovable assets valued at approximately Rs 271.48 crore under the Prevention of Money Laundering Act (PMLA), 2002. This action is part of the ongoing investigation against Rajendra Narpatmal Lodha and his associates in connection with alleged cheating against M/s Lodha Developers Ltd. According to the official release, the action was taken on March 26, 2026.
The attached properties include land parcels located in Panvel and Shahapur Talukas of Maharashtra. These areas are known for their potential for real estate development, making the seizure of these assets a significant step in the investigation.
The ED’s investigation was initiated based on FIRs registered by the Mumbai Police against Rajendra Lodha and others under various sections of the BNS 2023 (corresponding to the Indian Penal Code). The FIRs allege cheating, abuse of official position, unauthorized sale of assets, and fabrication of documents, which caused wrongful losses to Lodha Developers Ltd.
The ED investigation revealed that Rajendra Lodha was involved in diverting company funds and assets through unauthorized sale and transfer of company-owned immovable properties at undervalued prices to proxy entities and individuals connected to him, without the approval of the Board of Directors. He allegedly also fabricated Memorandums of Understanding (MoUs) for land purchases at inflated prices, siphoning off the excess cash and misappropriating company funds. The investigation further indicates that Lodha, along with related persons, associates, and entities, accumulated assets through fraudulent activities, causing significant losses to the company.
Earlier, on November 12, 2025, the ED conducted searches at 14 locations in Mumbai, freezing assets worth approximately Rs 88 crore. With the latest attachment, the total seizure in this case now stands at around Rs 359.48 crore.
Rajendra Lodha was arrested on February 12, 2026, and is currently in judicial custody. The further investigation is under progress, and the ED is expected to continue its efforts to recover the remaining assets and bring all those involved to justice.
The Lodha Developers fraud case has been a significant blow to the real estate sector in India, highlighting the need for stringent regulatory measures to prevent such fraudulent activities. The actions taken by the ED are a clear message that such malpractices will not be tolerated, and those involved will face the full force of the law.
