Ex-Lodha Director Rajendra Lodha Arrested in Mumbai Fraud Case.

Former Lodha Director Rajendra Lodha Arrested in Mumbai

• Mumbai Police Property Cell Makes Arrest in Financial Fraud Case

• Rajendra Lodha Resigns from Lodha Developers Ahead of Arrest

• Lodha Developers Enforces Zero-Tolerance Policy in Wake of Scandal

Former Lodha Developers director Rajendra Lodha was arrested by Mumbai Police on September 17 for alleged financial fraud. His arrest followed his resignation after an internal ethics probe. The company has launched a comprehensive review of its processes, emphasizing its strict zero-tolerance policy towards misconduct.

Former Lodha Director Rajendra Lodha Arrested in Mumbai Over Alleged Financial Fraud

In a significant development, Rajendra Lodha, a former director of the real estate giant Lodha Developers, was arrested by the Mumbai Police on September 17 for his alleged involvement in a financial fraud case. The Property Cell of the Mumbai Crime Branch apprehended Lodha from his upscale residence in Worli, central Mumbai. This arrest follows his recent resignation from the company’s board last month after an internal ethics committee review of his conduct, signaling a serious breach of corporate governance protocols.

Click Here To Download the News Attachment

The Arrest and Initial Court Proceedings

According to a PTI report, Lodha’s alleged role in the fraud was uncovered during an ongoing investigation, which directly led to his arrest. He was subsequently produced before a local court, which has remanded him to police custody until September 23. This custodial period will allow investigators to conduct intensive questioning and gather further evidence. The specific nature of the financial fraud has not yet been fully disclosed to the public, though it is believed to involve complex financial transactions.

Lodha Developers’ Stance and Internal Investigation

Lodha Developers moved swiftly to distance itself from the former executive. In a regulatory filing on the day of the arrest, the company reiterated its “strict zero-tolerance policy towards any misconduct.” The filing confirmed that Rajendra Lodha resigned from all positions within the organization on August 17, 2025, at the company’s explicit request. For transparency, the company noted he is a distant fourth-degree relative of Managing Director and CEO Abhishek Lodha, underscoring that familial ties did not influence their decision.

Also Read: UMC Corruption Exposed in Ulhasnagar Tree Felling Scandal.

Corporate Governance Overhaul Post-Scandal

In response to the incident, the Sprouts News Investigation Team (SIT) has learned that Lodha Developers initiated a comprehensive, independent review of its internal processes and controls. The company engaged an external firm to audit areas related to the former director’s responsibilities. Their recommendations are now being implemented with immediate effect to prevent future breaches. This proactive approach is critical for maintaining investor confidence in India’s volatile real estate market, where corporate governance is under increasing scrutiny.

Broader Implications for Real Estate and Corporate Ethics

This case highlights the critical importance of robust internal audit mechanisms and ethical committees within major Indian corporations. The swift action by both the company and law enforcement signals a hardening stance against financial misconduct at senior levels. As the Sprouts News Investigation Team (SIT) has previously reported, the real estate sector remains susceptible to complex financial fraud, making such vigilance paramount. The Mumbai Police’s probe continues, and further developments are expected as the custody period unfolds.