Mumbai Crime Branch Nabs Ex-Lodha Director in Rs 85 Crore Fraud Case

The arrest of Rajendra Lodha, a former director of Macrotech Developers, has exposed a Rs 85 crore fraud involving misrepresentation and unauthorized land sales, shaking India's real estate sector.

Real EstateFraudMumbaiLodha DevelopersMacrotech DevelopersReal Estate MumbaiSep 18, 2025

Mumbai Crime Branch Nabs Ex-Lodha Director in Rs 85 Crore Fraud Case

Real Estate Mumbai:Rajendra Lodha Accused of Misrepresentation and Unauthorized Land Deals

NEW DELHI (India CSR): In a high-profile crackdown, Mumbai’s Crime Branch arrested Rajendra Lodha, a former director of Lodha Developers Ltd (now Macrotech Developers Ltd), on September 17, 2025, for his alleged involvement in a Rs 85 crore fraud. The case, which has sent shockwaves through India’s real estate sector, involves accusations of misrepresentation, unauthorized land sales, and illicit transactions that cost the company millions. As investigations unfold, questions about corporate governance and insider misconduct are coming to the forefront, with implications for one of India’s largest real estate firms. This article delves into the details of the scandal, its impact, and the ongoing probe.

A Multimillion-Rupee Fraud Uncovered

The arrest of Rajendra Lodha, 59, stems from a complaint filed by Macrotech Developers, accusing him of orchestrating a complex fraud scheme between September 2013 and August 2025. As a former director responsible for land acquisitions in Thane, Kalyan, and Panvel, Lodha allegedly abused his authority by selling company assets at undervalued prices and diverting funds for personal gain. The Mumbai Crime Branch’s Property Cell took him into custody from his Worli residence, marking a significant escalation in the case.

The fraud came to light after an internal audit flagged suspicious transactions, prompting Macrotech to involve law enforcement. A First Information Report (FIR) was registered at N M Joshi Marg police station under sections of the Bharatiya Nyaya Sanhita (BNS) for cheating, forgery, criminal breach of trust, and misappropriation of funds. The FIR names Lodha, his son Sahil, and eight associates, including Bharat Massana, Nitin Vador, and Ritesh Narsana, as co-conspirators.

Allegations of Misrepresentation and Unauthorized Sales

The heart of the scandal lies in Lodha’s alleged misrepresentation in property dealings. In one instance, he reportedly collected Rs 3.03 crore in cash from homebuyer Nilesh Agarwal by falsely promising land rights for flats in the Lodha New Cuffe Parade project. Additionally, Lodha is accused of selling a 1.46-acre company-owned plot in Ambernath, valued at Rs 10 crore, for a mere ₹88 lakh, resulting in a Rs 9.12 crore loss. Another transaction involved a 3,630-square-meter plot sold to Edutech Infratech LLP, a firm linked to his son Sahil, at Rs 2.75 crore—far below its market value of Rs 9 crore, causing a Rs 6.25 crore loss.

Perhaps the most significant allegation involves the diversion of Transferable Development Rights (TDR) worth Rs 49 crore through 35 underpriced transactions in Kalyan-Dombivli. These deals, executed without company authorization, allegedly funneled profits to Lodha and his associates, further eroding Macrotech’s assets. “The accused misused his position to orchestrate fraudulent deals, forging agreements and MoUs to facilitate unauthorized sales,” said Investigating Officer Mangesh Desai during Lodha’s court appearance.

Legal Proceedings and Lodha’s Defense

On September 17, Rajendra Lodha was produced before a Mumbai court, which remanded him to police custody until September 23, 2025, to allow further investigation. Represented by advocates Zulfiquar Memon, Parvez Memon, and Niranjan Mundargi, Macrotech Developers emphasized its zero-tolerance policy toward misconduct. The company clarified that Lodha, a distant relative of its Managing Director and CEO Abhishek Lodha, resigned on August 17, 2025, following an ethics committee review.

Lodha, however, denied the allegations, claiming he was wrongfully arrested. “I’ve served the company for 35 years and never had sole decision-making authority. All transactions were approved by multiple senior officials,” he told the court. His legal team argued that the accusations lack evidence and that Lodha’s actions were part of standard operations vetted by higher management. The police, however, maintain that Lodha colluded with aides to execute the fraudulent deals, with ongoing probes to trace the money trail and identify additional beneficiaries.

Community and Industry Impact

The scandal has rocked Mumbai’s real estate sector, where Macrotech Developers, founded by Maharashtra Minister Mangal Prabhat Lodha, is a leading player with projects like Lodha New Cuffe Parade and Palava City. The company’s stock dipped by 2.3% on September 18, 2025, reflecting investor concerns about governance and financial oversight. Industry analysts warn that the case could erode consumer trust in high-value real estate transactions, particularly in premium projects.

For homebuyers like Nilesh Agarwal, the fraud has personal repercussions. “I trusted the Lodha brand, but now I’m out ₹3 crore with no clarity on my investment,” he said. The case has also sparked calls for stricter regulations in real estate, with experts urging the Real Estate Regulatory Authority (RERA) to enhance oversight of developer transactions and protect buyers from misrepresentation.

Ongoing Investigation and Broader Implications

The Mumbai Crime Branch is intensifying its investigation, focusing on how Lodha and his associates utilized the illicit proceeds. Authorities are examining bank accounts, shell companies, and potential benami transactions linked to the accused. The probe has also uncovered allegations of threats against Macrotech’s management, with Lodha reportedly warning CEO Abhishek Lodha of dire consequences if action was taken against him.

This case underscores the vulnerabilities in India’s real estate sector, where insider misconduct and lax oversight can lead to significant financial losses. As one of India’s largest real estate firms, Macrotech’s swift response—filing a complaint and cooperating with authorities—sets a precedent for accountability. However, the incident highlights the need for robust internal audits and transparent governance to prevent such frauds.

Protecting Against Real Estate Fraud

For consumers navigating India’s real estate market, the Lodha case offers critical lessons. Experts recommend the following steps to avoid falling victim to fraudulent schemes:

- Verify Developer Credentials: Research the developer’s track record and RERA registration before investing.
- Demand Transparent Documentation: Ensure all agreements, including land rights and payment terms, are clearly documented and verified.
- Conduct Due Diligence: Check property titles and approvals to confirm legitimacy.
- Seek Legal Advice: Consult a lawyer to review contracts and protect against misrepresentation.
- Report Suspicious Activity: Immediately notify RERA or local authorities if you suspect fraud.

As India’s real estate sector continues to grow, with a projected market size of $1 trillion by 2030, incidents like this emphasize the importance of vigilance and regulatory reform to safeguard investors and maintain industry integrity.

Looking Ahead: Restoring Trust

Macrotech Developers has vowed to strengthen its internal controls, with an independent external firm reviewing its processes to prevent future misconduct. The company’s proactive stance, including Lodha’s resignation and the filing of the complaint, aims to restore confidence among stakeholders. However, the ongoing investigation will be critical in determining the full extent of the fraud and ensuring justice for affected parties.

The arrest of Rajendra Lodha marks a pivotal moment for India’s real estate industry, highlighting the need for accountability at the highest levels. As the case unfolds, it will likely influence how developers approach governance, transparency, and consumer trust in an increasingly competitive market.

Frequently Asked Questions

Who is Rajendra Lodha and what is his connection to Macrotech Developers?

Rajendra Lodha is a former director of Macrotech Developers Ltd (formerly Lodha Developers Ltd). He was responsible for land acquisitions in Thane, Kalyan, and Panvel. He was arrested for alleged involvement in a Rs 85 crore fraud.

What are the main allegations against Rajendra Lodha?

The main allegations against Rajendra Lodha include misrepresentation, unauthorized land sales, and diverting company funds. He is accused of selling company assets at undervalued prices and forging agreements to facilitate unauthorized sales.

How did the fraud come to light?

The fraud came to light after an internal audit by Macrotech Developers flagged suspicious transactions. This prompted the company to file a complaint with law enforcement, leading to the arrest of Rajendra Lodha.

What impact has this case had on Macrotech Developers and the real estate sector?

The case has rocked the real estate sector, leading to a dip in Macrotech Developers' stock and raising concerns about corporate governance and financial oversight. It has also sparked calls for stricter regulations and enhanced oversight.

What steps are being taken to prevent such frauds in the future?

Macrotech Developers has vowed to strengthen its internal controls and is conducting an independent review of its processes. Experts recommend consumers verify developer credentials, demand transparent documentation, conduct due diligence, seek legal advice, and report suspicious activity to prevent fraud.