The Enforcement Directorate (ED), Mumbai Zonal Office, conducted extensive search operations on 12 November 2025 under the Prevention of Money Laundering Act (PMLA), 2002, across 14 locations in Mumbai and surrounding areas. The operation forms part of an ongoing investigation into alleged financial and property-related irregularities linked to Lodha Developers Ltd (M/s LDL). During the raids, the agency seized approximately ₹59 crore in cash, bank balances, fixed deposits (FDs), digital devices, and critical documents. In addition, records related to immovable assets worth several crores were frozen for further investigation.
The ED initiated the probe on the basis of FIRs registered by the Mumbai Police against Rajendra Narpatmal Lodha and associates under various sections of the BNS 2023, relating to cheating, abuse of official position, unauthorized sale of assets, fabrication of documents, and causing wrongful loss exceeding ₹100 crore to a public-listed entity, M/s Lodha Developers Ltd.
The investigation has revealed that Rajendra Lodha was involved in diverting and siphoning company funds and assets through unauthorized sales and transfers of company-owned immovable properties at undervalued prices to proxy entities and individuals connected to him, all without the approval of the Board of Directors. These transactions caused substantial financial losses to the company while benefiting Lodha and his associates personally.
Further scrutiny uncovered that inflated Memorandums of Understanding (MoUs) were fabricated for land acquisitions. The inflated amounts were subsequently siphoned off in cash through sellers, enabling personal enrichment at the company’s expense. ED officials noted that these activities involved not only Lodha but also family members, close associates, and related business entities, forming a network to manipulate company assets for private gain.
The raids also yielded digital evidence, forged documents, and financial records, which will play a crucial role in understanding the flow of funds and potential money laundering activities. According to the ED, the investigation is still ongoing, and further disclosures are expected as the case develops.
Experts note that this case highlights the importance of corporate governance and financial transparency. The investigation signals a strong enforcement stance against large-scale financial frauds and misuse of corporate assets, sending a message about accountability in publicly listed companies.
The ED’s action underlines the zero-tolerance approach towards financial irregularities and unauthorized diversion of company resources. It also serves as a reminder that regulatory authorities are closely monitoring corporate transactions to safeguard shareholder interests and maintain market integrity.
