PANAJI
The Enforcement Directorate (ED) on Sunday said that the entities operating the Arpora-based nightclub Birch by Romeo Lane, where a devastating fire last year claimed 25 lives, generated revenue of about Rs 22 crore over the last two financial years -- an amount suspected to be “proceeds of crime” under the Prevention of Money Laundering Act (PMLA). The ED also revealed that the club was operating without mandatory statutory licences and approvals.
In a press statement, ED informed that searches were carried out at nine premises across Goa, New Delhi and Gurugram, including the premises of the Sarpanch and Secretary of the Arpora–Nagoa Panchayat, as part of the investigation against Saurabh Luthra and others. The probe is based on two FIRs registered by the Goa Police, which include scheduled offences under the PMLA.
“The searches have revealed serious irregularities in statutory compliance including the procurement of licences on the basis of forged documents and the continued operation of commercial activities despite the absence of mandatory approvals from competent authorities,” ED said.
Investigators revealed that Birch by Romeo Lane generated approximately Rs 22 crore in revenue during FY 2023–24 and FY 2024–25. “This revenue, prima facie, suspected to constitute proceeds of crime, as the nightclub was functioning without the statutory licenses and on the basis of forged No Objection Certificates and licences obtained from various departments,” ED said.
The agency further said that evidence related to foreign remittances routed through group entities was also unearthed during the searches and possible violations of multiple laws are now under examination. It was also found that “crores of rupees generated from the illegal operation of the establishment were diverted to personal bank accounts of individuals as well as to accounts of other group entities”.
During the course of the operation, the ED seized various incriminating documents and digital devices relevant to the investigation. Additionally, bank accounts of persons and entities suspected of holding proceeds of crime have been frozen under the provisions of the PMLA, 2002.
The investigation, which the ED said is still under progress, is also focusing on a possible corruption angle and the subsequent laundering of proceeds of crime by other individuals. The ED noted that two such persons have already been arrested by the Goa Police in connection with the case.
The Goa police have so far arrested ten people in this case, including the Luthra brothers and ex-Arpora-Nagoa Sarpanch Roshan Redkar and former secretary Raghuvir Bagkar.
