A special court in Mumbai has taken cognisance of an Enforcement Directorate (ED) complaint against former Lodha Developers director Rajendra N Lodha and four others in an alleged money-laundering case involving fraudulent land transactions worth Rs 85 crore and diversion of company funds.
The court, acting under the Prevention of Money Laundering Act (PMLA), took cognisance of the complaint on Wednesday. However, it discharged Rajendra Lodha’s son, Sahil Lodha, from the proceedings, observing that the available material did not establish his active involvement in the alleged transactions.
The court noted that the allegations indicated Rajendra Lodha was the principal person behind the disputed land deals. While Sahil was allegedly helping his father in certain transactions, the judge observed that the material suggested the deals were carried out in his name without his active participation.
The court also declined to issue process against another accused, Shital Palande, citing inconsistencies in the ED complaint regarding her professional association with Lodha Developers.
Court Questions Shital Palande’s Role
The court observed that the ED had described Palande as being engaged in business, while the complaint also referred to her as a channel partner involved in sales for Lodha Developers.
Pointing out the discrepancy, the judge questioned the basis for naming her as an accused when the complaint itself indicated her association with the company as a sales channel partner. Consequently, the court declined to initiate proceedings against her.
ED Investigation Followed Police Complaints
The ED’s investigation originated from two police complaints registered in September 2025. The complaints alleged cheating, forgery, use of forged documents, criminal breach of trust and other offences, involving alleged financial losses exceeding Rs 100 crore to Lodha Developers.
According to the ED, Rajendra Lodha had been associated with Lodha Developers since 1990 and was appointed as a director in 2015.
The agency alleged that he misused his position to undertake unauthorised land transactions and divert company funds. A board resolution had authorised him to purchase land for the company but did not permit him to sell land, dispose of company assets or transfer transferable development rights.
However, the ED alleged that Rajendra Lodha, along with associates, carried out transactions beyond the authority granted to him.
Allegations of Unauthorised Transactions and Fund Diversion
The complaint alleged that the transactions involved fabricated possession-holder memoranda, cash withdrawals and disputed land deals. The agency further alleged that these methods were used to facilitate unauthorised dealings and divert funds.
The alleged money-laundering transactions are valued at Rs 85 crore, while the underlying police complaints cited losses of more than Rs 100 crore to the company.
The court’s decision to take cognisance advances the proceedings against Rajendra Lodha and four others. However, the allegations are yet to be established through the judicial process. The court’s observations regarding Sahil Lodha and Shital Palande also clarify the individuals against whom proceedings will continue at this stage.
