Mumbai Crime Branch Arrests Former Lodha Developers Director in ₹85 Crore Fraud Case

Mumbai’s Crime Branch has arrested Rajendra N. Lodha, a former director of Lodha Developers Ltd (now Macrotech Developers Ltd), in connection with an alleged ₹85 crore fraud. The arrest follows a complaint filed by the real estate firm, accusing Lodha of misappropriating company assets, including land and flats, through unauthorized transactions. Lodha has been remanded in custody until September 23.

Details of the Alleged Fraud

The complaint alleges that Lodha sold flats in the New Cuffe Parade project under false pretenses, sold land in Ambernath below market value, and transferred development rights (TDRs) worth ₹49 crore through 35 underpriced deals. These actions reportedly resulted in significant financial losses for the company.

Investigation and Legal Proceedings

The Mumbai Crime Branch has initiated an investigation into the matter, with Lodha and his associates under scrutiny for their roles in the alleged fraud. While Lodha claims to have acted with approval from senior officials, the police argue otherwise, leading to his arrest. The case has been registered under charges including cheating, forgery, and misappropriation.

Implications for the Real Estate Sector

This case highlights ongoing concerns about financial misconduct in the real estate sector, particularly in large-scale developments. It underscores the need for stringent oversight and accountability to prevent such fraudulent activities.

Conclusion

The arrest of Rajendra N. Lodha marks a significant development in the investigation of corporate fraud within the real estate industry. As the legal proceedings unfold, the case serves as a reminder of the importance of transparency and ethical practices in business operations.