In a sensational twist to one of Mumbai’s biggest real estate scandals in recent times, the crime branch of Mumbai Police arrested former Lodha Developers Ltd director Rajendra Lodha for his alleged involvement in an ₹85 crore fraud. The arrest has triggered shockwaves across the real estate sector, given the Lodha Group’s stature as one of India’s most prominent property developers.

Arrest and Court Custody

On Wednesday, officials from the property cell of the Mumbai police’s crime branch detained Rajendra Lodha from his Worli residence. He was produced before the Esplanade Court, where magistrate Vinod Patil remanded him to police custody until September 23, 2025.

This marks the second major controversy surrounding the Lodha family. A few years ago, the group had faced turbulence when brothers Abhishek Lodha and Abhinandan Lodha—sons of the group’s founder and BJP minister Mangal Prabhat Lodha—announced their split.

Allegations Against Rajendra Lodha

Rajendra Lodha, who served as a director of Lodha Developers Ltd (now Macrotech Developers Ltd) from September 2013 until August 18, 2025, resigned after the company’s ethics committee flagged irregularities in his conduct.

According to the FIR and investigation findings, he allegedly:

• Misused his position as director to engage in fraudulent land deals.

• Facilitated fake Memorandums of Understanding (MoUs) and undervalued prime properties.

• Sold company-owned land in Ambernath worth ₹10 crore for just ₹88 lakh.

• Undervalued a 3,630 sq. m. plot sold to Edutech Infratech LLP, linked to his son, causing losses of ₹6.3 crore.

• Diverted Transfer of Development Rights (TDR) worth over ₹49 crore across 35 underpriced transactions in Kalyan-Dombivli.

• Misrepresented ownership of Panvel land, siphoning off ₹3.03 crore in cash.

• Collected over ₹3 crore in cash from a buyer, Nilesh Agarwal, by falsely promising land rights in Lodha’s New Cuffe Parade project.

Police suspect that the actual fraud amount could be significantly higher than the currently estimated ₹85 crore.

FIR Details and Co-Accused

The case was registered on September 16, 2025, at the N. M. Joshi Marg police station under several provisions of the BNS, including cheating, forgery, breach of trust, and misappropriation of funds.

The FIR, filed by Monil Gala, head liaisoner at Lodha Developers Pvt. Ltd., named several accused along with Rajendra Lodha. These include his son Sahil Lodha and associates Bharat Massana, Nitin Vador, Ritesh Narsana, Nisha Menon, Neha Desai, Amit Kamble, Sujitkumar Jeetpratap Singh, and Vinod Patil.

Company’s Response

In an official statement, Lodha Developers stressed its zero-tolerance policy toward misconduct, regardless of the seniority or relationship of the individual concerned.

The company confirmed that Rajendra Lodha, a distant fourth-degree relative of MD and CEO Abhishek Lodha, resigned from all positions on August 17, 2025, at the firm’s request.

The statement read: “At the company’s request, Mr. Rajendra Lodha resigned from all positions held within the organisation on August 17, 2025. For transparency, we note that he is a distant relative of our Managing Director and CEO.”

Courtroom Drama

During the court proceedings, Probe Officer Mangesh Desai told the magistrate that Rajendra had colluded with his aides to sell land parcels without proper authorization, pocketing large sums in cash. The officer also highlighted that Lodha executed 35 TDR transactions at below-market rates, inflicting massive financial losses on the company.

The prosecution argued that further custody was essential to trace the flow of illicit funds, recover assets, and uncover whether more associates benefited from the fraudulent deals.

However, Rajendra’s defense lawyer countered that the arrest was illegal and unjustified. Rajendra himself addressed the court, stating, “I have worked in the company for 35 years. It is not the case that I was the sole authority to sign or approve any transaction. Every decision required multiple levels of approval from four to five officials above me.”

Threats and Resignation Drama

The company also alleged that in July 2025, when it demanded disclosure of Rajendra’s personal assets, he refused and threatened to resign. Later, through his associate Bharat Narosana, he allegedly issued threats to CEO Abhishek Lodha, comparing himself to a “suicide bomber” who could damage both the company and himself.

Eventually, Rajendra resigned and disclosed his family’s assets—including those of his wife Nitu Lodha and son Sahil Lodha. The company claims these disclosures revealed benami transactions and irregularities.

Impact on Mumbai’s Real Estate Sector

The arrest has created shockwaves in Mumbai’s real estate industry, already reeling from regulatory challenges and shifting buyer sentiments. Experts believe the scandal may erode investor confidence in the sector, particularly because the Lodha brand has long been associated with luxury and trust.

Industry watchers say the fraud figure could rise beyond ₹85 crore as investigators continue to probe Rajendra’s financial dealings, benami holdings, and alleged collusion with brokers.

What Lies Ahead

For now, the court has extended Rajendra Lodha’s police custody until September 23, 2025, to allow investigators to build a stronger case. As more details emerge, the scandal could reshape not only the fate of Rajendra Lodha and his associates but also raise wider questions about corporate governance in India’s real estate giants.

With inputs from agencies

Image Source: Multiple agencies

© Copyright 2025. All Rights Reserved. Powered by Vygr Media.