Mumbai Crime Branch Cracks Down: Arrests Ex-Director in Rs 85 Crore Lodha Developers Fraud

MUMBAI: In a significant development, Mumbai’s Crime Branch has arrested Rajendra N. Lodha, 57, along with several others, for allegedly defrauding Lodha Developers of Rs 85 crore. The case, which has been under intense scrutiny, stems from a complaint filed by Lodha Developers Ltd., one of India’s largest real estate firms.

The company accused its former director, Rajendra Narpatmal Lodha, his son Sahil Lodha, and several associates of large-scale fraud, misappropriation of assets, and criminal breach of trust amounting to nearly Rs 85 crore. The allegations include unauthorized sales of company-owned properties, undervaluing land deals, and engaging in illegal Transferable Development Rights (TDR) transactions.

According to the police, Rajendra Lodha, who was authorized only to acquire land on behalf of the company, allegedly abused his position by carrying out unauthorised sales of company-owned properties. This unauthorized activity not only led to significant financial losses but also damaged the company's reputation in the real estate market.

The investigation revealed that Lodha and his associates had been systematically misusing their positions to siphon off funds and assets. The Crime Branch, after a thorough investigation, identified the key players involved in the fraud and took swift action to apprehend them.

Lodha Developers, known for its vast portfolio of residential and commercial projects, has been a prominent player in the real estate sector for decades. The company's management expressed relief and gratitude towards the Crime Branch for their diligent efforts in bringing the culprits to justice.

The arrest of Rajendra N. Lodha and his associates is expected to send a strong message to others in the industry about the consequences of such fraudulent activities. The Crime Branch is continuing its investigation to uncover the full extent of the fraud and to ensure that all those involved are held accountable.

In a statement, the CEO of Lodha Developers said, 'We are committed to maintaining the highest standards of integrity and transparency. The swift action by the Crime Branch is a testament to our commitment to upholding the law and protecting the interests of our stakeholders.'

The case has also raised questions about the internal controls and governance practices within large real estate firms. Experts suggest that this incident will likely lead to stricter regulations and more rigorous oversight in the real estate sector to prevent similar incidents in the future.

As the legal proceedings move forward, the focus will be on recovering the lost funds and ensuring that the company can return to its usual operations without further disruptions. The Crime Branch is working closely with Lodha Developers to ensure a comprehensive resolution to this complex case.