Mumbai, Feb 12: The Enforcement Directorate (ED) on Thursday arrested Rajendra Lodha, former director of Lodha Developers Ltd (LDL), in an alleged money laundering case.
The ED had last month obtained a production warrant to arrest Lodha in the case. After the court’s approval, he was formally arrested on Thursday. Lodha would be produced before the special court where the agency will seek his custody for interrogation.
Allegations of diversion of company funds
According to the ED, “Lodha, in conspiracy with his son and other associates, abused his fiduciary position and fraudulently executed unauthorised transactions, causing substantial wrongful loss to the company.”
He orchestrated diversion of company funds through bogus possession holders and fabricated MoUs, withdrew funds in cash and unlawfully alienated company land and TDRs at undervalued rates, the ED claimed.
Proceeds of crime allegedly layered
The proceeds of crime generated through various illegal means, including cash received against sale of TDR, siphoning of funds through fictitious brokerage transactions and bogus possession and barter deals, were utilised for acquisition of agricultural lands in the name of Usha Properties, purchase of gold bars and further layering of funds through family members and associate entities, the agency said.
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The agency's investigation revealed that, instead of acquiring lands directly in the name of LDL, Lodha devised a fraudulent modus operandi whereby lands intended for the company were first purchased through front entities – Usha Properties and Shreeram Realties – which were created, controlled and managed by his associates, with part consideration paid in unaccounted cash sourced from diverted company funds.
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