Lodha Developers, one of India’s largest property developers, revealed on September 17 that an alleged fraud worth ₹85 crore had been discovered within the company. The matter has been linked to former executive director Rajendra Lodha, who resigned the same day. An FIR has been filed, and a forensic audit is underway to determine if actual losses may exceed current estimates.
The disclosure has raised concerns across India’s corporate and financial sectors, highlighting potential weaknesses in internal oversight at a company long seen as a leader in the real estate industry.
Sushil Modi, Director-Finance at Lodha Group, said, “We are absolutely shocked and saddened that this has happened, especially at the level of an executive director.” Despite promises of transparency and full cooperation with regulators, investor anxiety was evident.
Following the news, Lodha Group shares were trading at ₹1,201.30 on the National Stock Exchange, reflecting a 13 percent decline over the past year. The company’s market capitalization stands at ₹1,20,358 crore, making it a major player in the sector, though confidence in its governance is now under scrutiny.
The alleged fraud comes as Lodha aggressively expands into digital infrastructure. The group recently signed a ₹30,000 crore agreement with the Maharashtra government to develop an integrated green data center park at Palava, supporting hyperscale players such as Amazon. “Our target is to build an annuity income stream of around ₹1,500 crore by the end of the decade,” Modi said.
While Lodha insists it will provide infrastructure rather than operate data centers, the investigation casts a shadow over its ambitions. For India’s corporate sector, the case underscores the importance of accountability at senior levels and the challenges of maintaining investor trust.
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