ED crackdown on former director of Lodha Developers, recovers assets worth Rs 59 crore
NEW DELHI/MUMBAI: The Enforcement Directorate (ED) sleuths carried out raids at 14 locations in Mumbai in a money laundering case against Rajendra Narpatmal Lodha, former director of Lodha Developers, the agency said on Friday. The raids were carried out on Wednesday.
During the operations, movable assets amounting to Rs 59 crore in the form of cash, bank balances and fixed deposits along with various other incriminating documents, digital devices and immovable asset details worth several crores were seized and frozen. The agency had initiated money laundering investigation on the basis of FIRs registered by Mumbai Police against Rajendra Narpatmal Lodha and others under various sections of BNS 2023 for cheating, abuse of official position, unauthorised sale of assets and creation of false documents causing wrongful loss to Lodha Developers Ltd (a public listed entity) of more than Rs 100 crore.
During the investigation, the agency sleuths found Rajendra Narpatmal Lodha was involved in diverting and siphoning funds and assets of Lodha Developers Ltd (M/s LDL) through unauthorised 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 was also involved in fabrication of Memorandums of Understanding (MoUs) for land purchase at inflated prices, subsequently siphoning the inflated portion as cash through the sellers and thereby misappropriating company funds. Investigation reveals that Rajendra Lodha, along with his related persons, associates and entities, accumulated assets through these fraudulent activities causing wrongful loss to Lodha Developers Ltd.
Rajendra Lodha had resigned from all positions on August 17, at the company's request, after its Ethics Committee reviewed his conduct. The case began after Lodha Developers filed a complaint accusing Rajendra Lodha, his son Sahil Lodha, and several associates of large-scale fraud, misappropriation of assets, and criminal breach of trust.