Mumbai Police Arrests Former Lodha Group Director in ₹85 Crore Fraud Case

Mumbai: In a sensational development on Wednesday, the property cell of the Mumbai police's crime branch arrested Rajendra Lodha, a relative of real estate tycoon and BJP minister Mangalprabhat Lodha, in connection with an alleged ₹85 crore fraud at Lodha Developers Pvt. Ltd.

Rajendra Lodha was produced before the Esplanade Court and remanded to police custody until September 23. This is the second time the Lodha group has been embroiled in controversy. A few years ago, the sons of Mangal Prabhat Lodha, Abhishek and Abhinandan, split.

The case was registered on September 16 at N. M. Joshi Marg police station under various sections following a complaint by Monil Gala, head liaisoner at Lodha Developers Pvt. Ltd. The FIR alleged massive financial irregularities, illegal land sales, misuse of company position, and fraudulent transactions causing losses of over ₹85 crore to the company.

Rajendra Lodha, who has been associated with the company since 1990 and became a director in 2015, allegedly misused his position to authorize fake land deals and fraudulent agreements. He is accused of creating false MoUs, undervaluing prime properties, and diverting large sums of money for personal benefit. Lodha allegedly sold land worth ₹10 crore in Ambernath for just ₹88 lakh and undervalued another property in Panvel, causing losses of over ₹6.25 crore to the company.

The company alleged that Lodha, along with his son Sahil Lodha and brokers, misrepresented ownership of land in Panvel to siphon off ₹3.03 crore in cash. Investigations also revealed suspicious TDR (Transfer of Development Rights) sales in Kalyan-Dombivli, where Lodha allegedly carried out 35 transactions at below-market rates, causing losses of nearly ₹20 crore.

In July 2025, when the company sought details of Lodha’s personal assets, he allegedly refused to disclose the information and threatened to resign. Later, through his associate Bharat Narosana, Lodha allegedly issued threats to Abhishek Lodha, the company’s MD, warning that he could damage both the company and himself, comparing himself to a “suicide bomber.”

Lodha subsequently resigned as full-time director and submitted asset details of himself, his wife Nitu, and his son Sahil. The company alleged that the disclosures exposed massive financial irregularities and benami dealings.

During the hearing, the counsel for the crime branch argued that Rajendra Lodha systematically defrauded Lodha Developers by abusing his position as director and siphoning off at least ₹85 crore. Investigators told the court that further probe was required to trace whether more assets were acquired using illicit funds and to scrutinize the undervalued TDR transactions.

The court granted police custody till September 23 to allow for detailed interrogation and recovery of evidence. The case has sent shockwaves through Mumbai’s real estate sector, with investigators suspecting that the fraud amount may exceed the ₹85 crore estimated so far.