Mumbai: In a sensational development on Wednesday, the property cell of the Mumbai police's crime branch arrested Rajendra Lodha, a relative of real estate tycoon and BJP minister Mangalprabhat Lodha, in connection with an alleged ₹85 crore fraud in Lodha Developers Pvt. Ltd.
Rajendra Lodha was produced before the Esplanade Court and he was remanded to police custody till September 23. This is the second time the Lodha group is being rocked by a controversy. A few years ago, the sons of Mangal Prabhat Lodha, Abhishek and Abhinandan, split.
FIR Details Alleged Massive Irregularities
The case was registered on September 16 at N. M. Joshi Marg police station under BNS Sections 316(5), 318(3), 336(3), 338, 340(2), 351(3), and 61(2) following a complaint by Monil Gala, head liaisoner at Lodha Developers Pvt. Ltd.
The FIR alleged massive financial irregularities, illegal land sales, misuse of company position, and fraudulent transactions causing losses of over ₹85 crore to the company.
Allegations of Fake Deals and Undervalued Land Sales
Rajendra Lodha, who has been associated with the company since 1990 and became a director in 2015, allegedly misused his position to authorize fake land deals and fraudulent agreements.
He is accused of creating false MoUs, undervaluing prime properties, and diverting large sums of money for personal benefit. Lodha allegedly sold land worth ₹10 crore in Ambernath for just ₹88 lakh and undervalued another property in Panvel, causing losses of over ₹6.25 crore to the company.
Panvel Land Scam and TDR Transactions Under Lens
The company alleged that Lodha, along with his son Sahil Lodha and brokers, misrepresented ownership of land in Panvel to siphon off ₹3.03 crore in cash.
Investigations also revealed suspicious TDR (Transfer of Development Rights) sales in Kalyan-Dombivli, where Lodha allegedly carried out 35 transactions at below-market rates, causing losses of nearly ₹20 crore.
Threats and Resignation After Asset Disclosure Demand
In July 2025, when the company sought details of Lodha’s personal assets, he allegedly refused to disclose the information and threatened to resign. Later, through his associate Bharat Narosana, Lodha allegedly issued threats to Abhishek Lodha, the company’s MD, warning that he could damage both the company and himself comparing himself to a “suicide bomber.”
Lodha subsequently resigned as full-time director and submitted asset details of himself, his wife Nitu, and his son Sahil. The company alleged that the disclosures exposed massive financial irregularities and benami dealings.
Court Grants Police Custody Till September 23
During the hearing, the counsel for the crime branch argued that Rajendra Lodha systematically defrauded Lodha Developers by abusing his position as director and siphoning off at least ₹85 crore. Investigators told the court that further probe was required to trace whether more assets were acquired using illicit funds and to scrutinize the undervalued TDR transactions.
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Shockwaves in Mumbai Real Estate Sector
The court granted police custody till September 23 to allow for detailed interrogation and recovery of evidence. The case has sent shockwaves through Mumbai’s real estate sector, with investigators suspecting that the fraud amount may exceed the ₹85 crore estimated so far.
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