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New Delhi, Nov 14 (IANS) The Enforcement Directorate (ED) has seized and frozen movable assets worth about Rs 59 crore by conducting massive search operations at 14 locations in Mumbai as part of its money laundering probe against Rajendra Narpatmal Lodha and his associates. ED gave this information on Friday.
This action was taken on Wednesday under the Prevention of Money Laundering Act (PMLA), 2002.
According to the agency, a large amount of cash, bank balances, fixed deposits and several incriminating documents were recovered during the search.
Digital equipment and details of immovable properties worth several crores allegedly linked to the fraud were also seized.
The money laundering investigation was initiated by Mumbai Police on the basis of an FIR registered against Lodha and others under various sections of the Indian Code of Justice (BNS), 2023.
The FIRs relate to allegations of fraud, misuse of official position, unauthorized sale of properties and fabrication of documents, allegedly causing wrongful loss of over Rs 100 crore to publicly listed real estate company Lodha Developers Limited (LDL).
The ED investigation has exposed a complex web of alleged financial malpractices.
“ED’s investigation revealed that Rajendra Narpatmal Lodha was involved in diverting/selling funds and assets of M/s Lodha Developers Limited (M/s LDL) through unauthorized sale and transfer of immovable properties owned by the company at throwaway prices to proxy entities and persons connected with him, without the approval of the Board of Directors,” the ED said in its press note.
The investigators further found that Lodha and his associates created memoranda of understanding (MOUs) to purchase land at artificially inflated prices.
According to the ED, the increased amounts were allegedly siphoned off in cash through the original vendors, which helped Lodha systematically transfer company funds for personal gain.
“The investigation reveals that Rajendra Lodha, in connivance with his related persons, associates and entities, amassed wealth through these fraudulent activities, causing wrongful loss to M/s Lodha Developers Limited,” it said.
The agency said that further investigation is currently underway.
–IANS
SAS/VD