New Delhi, Nov 14 The Directorate of Enforcement (ED) has seized and frozen movable assets worth approximately Rs 59 crore after conducting extensive search operations across 14 locations in Mumbai as part of its money laundering probe against Rajendra Narpatmal Lodha and his associates, the ED said on Friday.
The action on Wednesday was carried out under the Prevention of Money Laundering Act (PMLA), 2002.
According to the agency, the searches resulted in the recovery of large quantities of cash, bank balances, fixed deposits, and several incriminating documents.
Digital devices and details of immovable assets allegedly linked to the fraud, running into several crores of rupees, were also confiscated.
The money laundering investigation was launched on the basis of FIRs filed by the Mumbai Police against Lodha and others under various sections of the Bharatiya Nyaya Sanhita (BNS), 2023.
The FIRs pertain to charges of cheating, abuse of official position, unauthorised sale of assets, and fabrication of documents that allegedly caused wrongful losses exceeding Rs 100 crore to Lodha Developers Ltd (LDL), a publicly listed real estate company.
The ED probe has uncovered a complex web of alleged financial misconduct.
"ED investigation revealed that Rajendra Narpatmal Lodha was involved in diverting/siphoning funds and assets of M/s Lodha Developers Ltd (M/s LDL) through unauthorised sale and transfer of company-owned immovable properties at undervalued prices to proxy entities and individuals connected to him, without the approval of the Board of Directors," the ED said in its press note.
Investigators further found that Lodha and his associates fabricated Memorandums of Understanding (MoUs) for land purchases at artificially inflated prices.
According to the ED, the inflated amounts were allegedly siphoned off in cash through the original sellers, enabling Lodha to systematically divert company funds for personal gain.
“Investigation reveals that Rajendra Lodha, along with his related persons, associates and entities, accumulated assets through these fraudulent activities, causing wrongful loss to M/s Lodha Developers Ltd,” it said.
The agency noted that further investigation is currently underway.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor