Charges of 'imitation' and a social media war: What led up to the Lodha vs Lodha legal feud

In better times: both Abhishek and Abhinandan Lodha were involved in the setting up of marquee projects such as Lodha's World One development in Lower Parel

India's second-most valued real estate developer, the Abhishek Lodha-helmed Macrotech Developers Ltd, which markets its projects under the Lodha brand, filed a brand infringement lawsuit against Abhinandan Lodha in the Bombay High Court on January 20.

The lawsuit, observers say, has been years in the making, fuelled by longstanding disputes over the use of the Lodha brand, accusations about Abhinandan's time at the Lodha Group, and a shadow war on social media.

Abhinandan, who now runs the plotted development firm The House of Abhinandan Lodha (HoABL) under Lodha Ventures, left the family business to start his own ventures, which also include startup acceleration and other verticals in 2017.

According to people familiar with the matter, tensions between the brothers started sometime prior to 2015, coinciding with Macrotech Developers facing a debt crisis and upcoming bond repayments worth Rs 16,000 crore. “The debt situation greatly strained relations between the brothers. The younger Lodha felt the debt had spiralled out of control due to mismanagement by the elder Lodha, and he wanted out,” as per a person familiar with the situation.

In 2017, the brothers reached a family settlement agreement, but differing accounts have emerged since. Abhishek Lodha’s representatives claim that Abhinandan received Rs 1,000 crore as part of the settlement, including a non-compete clause preventing him from using the Lodha name in real estate or entering competing businesses like vertical developments.

However, Abhinandan's camp denies this.

A spokesperson for Abhinandan said: “The claim that Abhinandan received Rs 1,000 crore is a lie. In their court case, Macrotech attached the 2017 family settlement agreement, which shows that Abhinandan received Rs 429 crore along with some apartments, totalling Rs 500 crore. It is disheartening to see a publicly listed company misleading the public through the media.”

The flashpoint

The dispute reached a flashpoint recently when HoABL acquired the American Center property in South Mumbai’s Marine Lines for over Rs 56 crore. Built in 1968, the seven-story structure, spread over 1,400 square metres, was part of the US Consulate and has been vacant for over a decade.

HoABL plans to redevelop the property into a super-luxury residential project with sea views of Marine Drive and Mumbai Harbour, marking its foray into vertical developments, something not palatable to the other camp.

“Abhinandan never intended to honour the family agreement and always had plans to enter vertical developments. The acquisition of the American Center three years ago only validates this,” a person close to Abhishek Lodha commented.

On the other hand, a source close to Abhinandan dismissed the allegations, stating, “It is ridiculous for Macrotech to suggest that Abhinandan is perpetrating a fraud when he uses a different brand for his plotted development business, which Macrotech is not involved in.”

Social media has amplified the rivalry. Influential accounts on the X platform referred to HoABL as a "scandal", while a prominent real estate influencer, who works with leading developers, referred to HoABL as having a similar-sounding name to Macrotech (Lodha).

Macrotech has alleged that Abhinandan intentionally used the Lodha name to mislead buyers and benefit from the brand's goodwill, stating, “Significant efforts were made to mislead buyers into believing that HoABL is part of Lodha. Despite efforts by family members to address this, Abhinandan continues to confuse customers deliberately.”

In response, Abhinandan told Moneycontrol, “Lodha Ventures and Lodha Finserv were given to me as part of the settlement process. The understanding was that the 'Lodha' name would not be used on a standalone basis in real estate, which is why our companies are named Lodha Ventures, The House of Abhinandan Lodha, and Lodha Finserv (non-operational).”

The silence of Mangal Prabhat Lodha, the patriarch of the Lodha family, is noteworthy. A politician and property magnate, he founded the Lodha Group in 1980 (now Macrotech Developers), building middle-class homes in Mumbai's suburbs. Abhishek and Abhinandan joined the business in 2003, after which the company expanded significantly.

Insiders suggest Mangal Prabhat has been largely supportive of Abhishek, whom he credits for Macrotech's IPO in 2021 and its financial strategy.

With the next court hearing scheduled for January 27, the legal battle over the Lodha brand and allegations of governance issues during Abhinandan's tenure may take centre stage.