ED Suspects Rs 22 Crore Revenue from Goa Nightclub as Proceeds of Crime
The Enforcement Directorate (ED) has declared that approximately Rs 22 crore generated by the entity operating Birch by Romeo Lane, the nightclub in Goa where a tragic fire claimed 25 lives on December 6, is suspected to be proceeds of crime. This revelation comes as part of an ongoing money-laundering investigation linked to the club's owners and partners.
Searches Uncover Forged Documents and Financial Irregularities
Earlier this week, the ED's Panaji Zonal Office conducted searches at nine premises across Goa, Delhi, and Gurgaon. These locations included properties associated with former sarpanch Roshan Redkar and ex-panchayat secretary Raghuvir Bagkar of Arpora-Nagoa village panchayat, who are alleged to have facilitated the issuance of trade licenses and No Objection Certificates (NOCs) to the club. The ED stated that these searches are integral to probing alleged money-laundering activities involving Saurabh Luthra, Gaurav Luthra, and Ajay Gupta, the owners and partners of Birch by Romeo Lane.
Investigation Based on Police FIRs and PMLA Offences
The ED initiated its investigation following two FIRs registered by the Goa Police, which include scheduled offences under the Prevention of Money Laundering Act (PMLA), 2002. The Goa Police had charged the Luthra brothers, along with the club's partners, manager, event organiser, and other staff, with culpable homicide in connection with the fire incident. Notably, the Luthra brothers attempted to flee the country by booking flights to Phuket at 1:17 am on December 7, just 90 minutes after the blaze, and were later deported to India and arrested, currently held in judicial custody.
ED Statement Details Revenue and Compliance Failures
In an official statement, the ED highlighted that searches revealed serious irregularities in statutory compliance, such as procuring licenses based on forged documents and operating without mandatory approvals. The entity generated around Rs 22 crore in revenue during the financial years 2023-24 and 2024-25, which is prima facie suspected to be proceeds of crime due to the club's illegal operation without necessary licenses and reliance on forged NOCs. Evidence of foreign remittances routed through group entities was also uncovered, with possible legal contraventions under examination.
Fund Diversion and Asset Freezing Under PMLA
Further investigation indicated that crores of rupees from the club's illegal operations were diverted to personal bank accounts and accounts of other group entities. The ED seized various incriminating documents and digital devices during the searches. Additionally, bank accounts of individuals and entities suspected of holding proceeds of crime have been frozen under PMLA provisions. The probe is also focusing on potential corruption angles and laundering of crime proceeds by other involved persons.
Magisterial Inquiry Confirms Panchayat Collusion
A magisterial inquiry established earlier this month to investigate the fire found that the local panchayat allegedly colluded with the property owners, allowing the club to run illegally without a valid trade license. The inquiry concluded that the panchayat failed in its statutory duty by not taking action to seal the property or shut down its operations, highlighting systemic lapses in governance and oversight.
