Court grants ED custody to investigate money laundering

Mumbai: A special court on Wednesday granted Enforcement Directorate (ED) permission to arrest Praful Lodha, in custody for multiple serious offences, to investigate allegations of money laundering. The order allows the central agency to take custody of Lodha to unearth the money trail and identify the source of funds used for the acquisition of various properties. Lodha (62) was produced before the court via a production warrant from Arthur Road jail, where ED moved an application seeking his arrest under Prevention of Money Laundering Act. The investigation into Lodha's financial dealings stems from several underlying criminal cases, including allegations of sexual assault, cheating and criminal intimidation. ED informed the court that Lodha allegedly lured victims with false promises of employment and subsequently exploited them. A specific cheating case registered in Nashik, involving the defrauding of an investor of Rs 62.5 lakh, served as the scheduled offence for the money laundering case.