Bombay HC quashes Rajendra Lodha's PMLA custody, flags arrest process

The Bombay High Court has delivered a significant ruling on the arrest of Rajendra Narpatmal Lodha, former director of Lodha Developers, reopening debate over the Enforcement Directorate's investigation in the case. A bench of Justice Milind Jadhav passed the order on 21 September 2026. The court clearly held that there were legal lapses in the process by which Lodha was arrested under the PMLA. The court set aside his custody and granted him bail on a surety of Rs 5 lakh.

Earlier in the case, the ED had sought permission from the special court to question Lodha under Section 50 of the PMLA and record his statement based on available documents. The special court had granted this request. However, it emerged that without completing this process, the ED went ahead and arrested him directly, based on the same available documents. The High Court raised questions on this very point and observed that using the power of arrest in this manner amounted to a "colourable exercise of power".

During the same investigation, the ED had also questioned MNS leader Vinod Patil from Kalyan Rural. The Lodha Group and the Patil family are said to have had business ties for nearly 30 years. The ED had questioned Vinod Patil about financial transactions arising from this business relationship. Patil's questioning following Rajendra Lodha's arrest had triggered considerable speculation and debate in political circles. With the High Court now raising serious objections to Lodha's arrest itself, fresh questions have arisen over the direction and methods of the entire investigation, and discussion around Vinod Patil's questioning has resurfaced as well.

The original FIR filed by the Mumbai police names Vinod Patil along with Rajendra Lodha, his son Sahil, and others. The FIR alleges that the company suffered financial losses through the sale of Lodha Developers' properties at low prices. It should be noted that all these allegations are currently under investigation.

According to an official statement issued by the ED in March 2026, the investigation against Rajendra Lodha and others in this case is ongoing. On 26 March, immovable properties worth approximately Rs 271.48 crore were provisionally attached. The ED had stated at the time that the total value of seizures and attachments in the case had reached approximately Rs 359.48 crore.