Why Was Lodha Developers' Former Director Arrested in a Fraud Case of Rs 85 Crore?
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Synopsis
In a shocking turn of events, Rajendra Narpatmal Lodha, the former director of Lodha Developers Limited, has been arrested for his alleged involvement in a massive Rs 85 crore fraud. As investigations unfold, serious allegations of asset misappropriation and unauthorized property sales come to light. What does this mean for India's real estate sector?
Key Takeaways
- Rajendra Lodha arrested for Rs 85 crore fraud.
- Allegations include misappropriation of assets.
- Investigation reveals forged documents and illegal transactions.
- Lodha Developers emphasizes zero-tolerance for misconduct.
- Further investigations are ongoing.
New Delhi, Sep 17 (NationPress) In a significant development, Mumbai Police’s Crime Branch has apprehended Rajendra Narpatmal Lodha, a former director of Lodha Developers Limited, due to his alleged participation in a fraud scheme amounting to Rs 85 crore, authorities reported on Wednesday.
The arrest took place at his residence in Worli, conducted by the property cell of the Mumbai Police's Crime Branch.
The investigation was initiated after Lodha Developers, recognized as one of India’s leading real estate firms, lodged a complaint against Rajendra Lodha, his son Sahil Lodha, and other associates for extensive fraud, asset misappropriation, and criminal breach of trust.
According to police allegations, Rajendra Lodha, who was only authorized to purchase land for the firm, exploited his authority to execute unauthorized sales of properties owned by the company.
He is also charged with undervaluing real estate transactions and engaging in illicit Transferable Development Rights (TDR) dealings.
After his arrest, Rajendra Lodha was brought before a court, which ordered his police custody until September 23.
Officials noted that his purported involvement in the fraud was revealed during the ongoing investigation.
Investigators assert that Lodha fabricated agreements, Memorandums of Understanding (MoUs), and other documents to facilitate these transactions.
The complaint details that land in Panvel, Ambernath, and Kalyan was misappropriated through fraudulent schemes, while counterfeit bookings and cash transactions were recorded in the company's flagship project, Lodha New Cuffe Parade.
In Bhopar village, Kalyan, over 7.15 lakh square feet of TDR was allegedly sold unlawfully, resulting in an estimated direct loss of around Rs 49 crore.
Lodha Developers acknowledged the incident in an official statement, emphasizing their strict zero-tolerance policy toward misconduct, irrespective of the individual's position.
The firm also stated that Rajendra Lodha had resigned from all roles on August 17 upon the company’s request, after an Ethics Committee evaluation of his conduct.
Additionally, the company clarified that Rajendra Lodha is a distant relative, a fourth-degree connection, of its Managing Director and CEO. Authorities indicated that further investigations into the matter are ongoing.
Point of View
I stand firmly in support of transparency and accountability in all sectors, especially in real estate. The arrest of Rajendra Lodha raises critical concerns about ethical practices within major corporations. It is imperative that we uphold the principles of integrity and ensure that those in positions of power are held accountable for their actions. We will continue to monitor this situation closely.
NationPress
20/09/2025
