The police custody of Rajendra Lodha, former whole-time director of Lodha Developers Ltd (LDL), has been extended till September 29 by the Esplanade Court, after investigators sought more time to probe alleged financial irregularities in one of India’s largest real estate firms.
Lodha was arrested on September 17 following an FIR filed by LDL accusing him of fraud, cheating, criminal breach of trust, and criminal conspiracy, allegedly duping the company of over Rs 85 crore. Investigators from the Property Cell of the Mumbai Crime Branch produced him before the court on Tuesday seeking an extension of his custody to further the investigation.
Within a week, police claim to have uncovered the modus operandi used by Lodha to siphon large sums from the company. Several witnesses have come forward detailing cash and gold transactions carried out by Lodha under the pretext of land acquisitions. Statements of seven witnesses have been recorded before a magistrate, while 25 others have submitted statements to the police.
Among those testifying are Lodha’s driver, who said he collected Rs 1 crore from Fort and Borivali locations and handed it to Lodha, and a former employee handling Lodha’s income tax returns, who claimed to have seen cash flows into Lodha’s office later deposited in his accounts. Investigators allege that Lodha sold a valuable LDL-owned plot to his son’s company at a throwaway price.
Police have also seized data from Lodha’s computers and phones, revealing documents detailing large cash transactions with other accused individuals. CCTV footage reportedly showed Lodha’s brother, Deepak Lodha, carrying three large bags out of his house, some of which have been confiscated and contain company records and cash transaction ledgers.
Authorities told the court that extended custody is required to trace alleged benami companies, recover gold bars reportedly received from Hemant Bafna, and conduct a forensic audit of Rs 49.22 crore allegedly transferred to Lodha’s son Sahil. Additionally, an intervention application has been filed by an Andheri resident claiming Lodha fraudulently grabbed their land in 2015–16, worth Rs 85 crore.
A Lodha Developers official told India Today TV that based on internal audits and witness statements, the total loss to the company could exceed Rs 100 crore.
After hearing the police arguments, the court approved the extension of Rajendra Lodha’s custody until September 29 to allow investigators to continue their probe.
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