Summary – Rajendra Lodha, ex-director of Lodha Developers, was arrested for a ₹85 crore fraud involving undervalued land deals and benami transactions. The case has sparked concerns over real estate governance.
Rajendra Lodha Arrested in ₹85 Crore Real Estate Fraud
A High-Profile Arrest Shakes Mumbai’s Real Estate
Mumbai – Rajendra Narpatmal Lodha, a former whole-time director at Lodha Developers Ltd (now Macrotech Developers), was arrested in mid-September after Mumbai Police registered an FIR alleging a protracted scheme to siphon company funds through undervalued land sales, manipulated transfer-of-development-rights (TDR) deals and benami transfers. The complaint, filed by the company itself, names Lodha, his son Sahil, and several associates and places the alleged loss at over ₹85 crore.
What the Police Say
Police say the irregularities span transactions from 2013 to 2025. According to investigators, Lodha used his position in land acquisition and project approvals to prioritise deals that benefited entities linked to him or his family. Several company-owned parcels were reportedly sold at steep discounts. One Ambernath plot valued at roughly ₹10 crore was allegedly sold for under ₹1 crore, and a parcel in Kalyan-Dombivli was transferred to a firm linked to his son for a fraction of market value.
The FIR describes an elaborate web of benami and shell entities used to launder proceeds. Investigators have identified large transfers, including a near-₹49 crore move to an account linked to Sahil Lodha and a ₹17 crore payment to a company called Usha Enterprises. Seized records, mobile devices and corporate ledgers are now undergoing forensic examination to trace the full money trail.
Witness testimony has become a focal part of the probe. Former employees and personal aides told police they moved substantial amounts of cash at Lodha’s direction and handled documentation connected to suspect deals. CCTV clips and contemporaneous ledgers recovered during searches reportedly show activity that investigators say supports allegations of concealment and improper diversion of assets.
The case began to unravel publicly after an internal compliance review in July 2025. When the company sought disclosure of Lodha’s personal assets, the board said he did not cooperate and allegedly issued veiled threats to senior management. Lodha resigned from his position in August “at the company’s request,” and the board promptly notified regulators and law enforcement.
Since he is arrested at his Worli residence on September 17, Lodha has been remanded to police custody for further questioning. Authorities have sought extended custody to pursue bank reconciliations, examine benami ownership structures and question additional witnesses. Sahil Lodha, named in the FIR, has not fully complied with police summons; officials told courts they are considering a lookout notice to prevent potential flight.
Company Response
Corporate and market watchers say the episode exposes governance gaps that can exist even within large, publicly listed developers. Lodha Developers’ board has expressed “zero tolerance” for misconduct and announced heightened internal controls while cooperating with investigators. Analysts suggest that the company filing the complaint may reflect a proactive, if belated, response to internal red flags.
Regulatory consequences may follow, depending on the outcome of forensic audits and the police charge sheet. While no central agencies have announced parallel probes, exchanges and investor bodies are expected to monitor disclosures closely. Market sentiment around the company could hinge on the board’s transparency regarding related-party approvals, valuation methods and steps taken to recover misappropriated funds.
For now, the criminal investigation remains the central thread. Police officials caution that the ₹85 crore figure in the FIR could be conservative; preliminary audits and further document reviews may reveal additional discrepancies. The next legal milestones to watch are custody hearings, the filing of a charge sheet, and any subsequent court proceedings that could translate investigative findings into formal charges.
The Lodha episode is likely to renew debate oversight in India’s real estate sector, where cash transactions and opaque related-party dealings are perennial risks. If the allegations are substantiated in court, the case could become a benchmark for how listed developers and regulators handle internal fraud and accountability in the property industry.
Conclusion
Rajendra Lodha’s arrest exposes significant governance failures at Lodha Developers, with allegations of fraud exceeding ₹85 crore. The case highlights the need for stricter oversight in the real estate sector, as investigations continue into the full extent of the financial misconduct.
Disclaimer: The information in this article is based on police reports, FIR details, and media coverage from reputed news outlets. Allegations mentioned are subject to ongoing investigation and legal proceedings.
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