Daijiworld Media Network - Mumbai

Mumbai, Feb 13: Former director of Lodha Developers, Rajendra Lodha, was produced before a special court under the Prevention of Money Laundering Act (PMLA) on Friday and remanded to Enforcement Directorate custody until February 20.

Lodha was arrested on Thursday in connection with a money laundering probe linked to an alleged Rs 85-crore fraud.

Seeking his custodial interrogation, special public prosecutor Sunil Gonsalves, appearing for the Enforcement Directorate, told the court that Lodha allegedly misused his position as director between 2021 and 2025. The ED claimed that he conspired with his son and other associates to carry out unauthorised transactions, including the sale of company-owned land parcels and Transferable Development Rights (TDRs) at significantly undervalued prices.

According to the agency, these transactions resulted in a wrongful loss exceeding Rs 85 crore to the company. The ED further argued that Lodha had been authorised only to purchase land on behalf of the firm and did not possess powers to sell land, dispose of company assets, or alienate TDRs. Although he was designated as a promoter in April 2021 after acquiring a nominal shareholding, investigators contended that no additional authority to execute such transactions had been granted to him.

The court granted the ED’s request for custody to facilitate further investigation into the alleged financial irregularities.