A Mumbai special PMLA court has taken cognisance of an Enforcement Directorate complaint against former Lodha Developers director Rajendra N. Lodha and four others over alleged ₹85 crore fraudulent land transactions and fund diversion. In its November 4, 2026 order, the court declined to proceed against Lodha's son Sahil, citing insufficient evidence of active involvement. It also refused to issue process against Shital Palande. The proceedings against the remaining five accused will continue, with the allegations yet to be proven.

Mumbai Court Takes Cognisance of ED Complaint Against Ex-Lodha Developers Director in Rs 85 Crore Case

A special court in Mumbai has discharged his son Sahil while taking cognisance of an Enforcement Directorate complaint against former Lodha Developers director Rajendra N Lodha and four others.

In a major legal development in the Lodha Developers money-laundering case, a Mumbai special court has taken cognisance of an Enforcement Directorate (ED) complaint involving alleged fraudulent land transactions worth Rs 85 crore and diversion of funds.

A court constituted under the Prevention of Money Laundering Act (PMLA) on Wednesday, November 4, 2026, passed an order against the ex-Lodha Developers director Rajendra N Lodha and four others.

However, the court discharged Rajendra's son Sahil from the proceedings, observing that he was not working with Lodha Developers and the material available on record primarily implicated his father.

Court's Observations on Rajendra N Lodha and Sahil

“The allegations show that Rajendra had a hand in arranging the land deals in question, and that he did so in his son’s name without his active participation,” the court said in its order.

Prima facie, Rajendra appeared to be the mastermind of the alleged illegalities in the land purchase transactions and the material on record did not show active involvement of Sahil, the judge said.

The court also made a distinction between assisting a family member with land matters and being directly involved in the alleged criminal transactions, pointing out the evidence available against each accused.

Thus, Sahil was discharged from the case. The ruling differentiates between the charges against Rajendra and the evidence regarding his son’s alleged involvement.

The court also refused to issue proceedings against another accused, Shital Palande, after finding discrepancies in the Enforcement Directorate’s reference to her professional association with the company.

In the complaint, Palande was identified as a channel partner for sales with Lodha Developers, while the ED described her occupation as business.

The judge also questioned this inconsistency and said that it appeared that the investigating agency was aware of her association with Lodha Developers, but her occupation was mentioned differently in the complaint.

ED Investigation and Allegations Against Lodha Developers' Former Director

The Enforcement Directorate's probe was initiated on the basis of two complaints filed with the police in September 2025 accusing cheating, forgery, use of forged documents and criminal breach of trust.

Those complaints allegedly involved losses to Lodha Developers of over Rs 100 crore, leading to further probe into offences scheduled under the Prevention of Money Laundering Act.

Rajendra has been associated with Lodha Developers since 1990 and was appointed director in 2015, the ED complaint said.

The agency argued that the board’s resolution permitted him to buy land on behalf of the company but not to sell land or dispose of the company’s assets.

It further alleged that Rajendra did not have the authority to alienate transferable development rights (TDRs) and that the disputed transactions were therefore unauthorised within the scope of his corporate responsibilities.

The ED’s complaint alleged that Rajendra was alleged to have misused his fiduciary position with the company and with associates to facilitate transactions involving company land, funds and other property-related interests.

The investigators also said that the funds were channelled through fake possession-holder memoranda, cash withdrawals, and controversial land deals as part of the alleged financial irregularities.

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The allegations include possible financial wrongdoing, such as suspected document falsification, unauthorised asset transactions, and diversion of company assets, but the claims are still subject to judicial review.

An important procedural development is the court’s decision to take cognisance. This decision allows the complaint to proceed against the accused persons for whom the process was considered appropriate.

But the discharge of Sahil and the finding in respect of Shital Palande show that the court considered the material and allegations in respect of each of the accused separately.

The investigation and judicial process are ongoing, and the proceedings will now determine the legal consequences of the allegations against the remaining accused.

Sprouts News will keep a watch on the case, including the ensuing court proceedings, reactions from the parties involved, and further developments in the Enforcement Directorate’s investigation.