ED Seizes Rs 17.5 Crore in Assets from Goa Nightclub After Fatal Fire
In a significant crackdown, the Enforcement Directorate (ED) has provisionally attached properties valued at Rs 17.5 crore belonging to the owners of Birch by Romeo Lane, the Arpora nightclub in Goa where a devastating fire claimed 25 lives on December 6. The ED's money laundering investigation has uncovered that the nightclub operated illegally for years, relying on a foundation of forged documents, expired licences, and fabricated regulatory clearances.
Systematic Fraud and Illegal Revenue Identified
The ED's Panaji zonal office invoked the Prevention of Money Laundering Act (PMLA), 2002, to attach assets of the nightclub's operating entity, Being GS Hospitality Goa Arpora LLP, and its operator Saurabh Luthra. The agency has identified the club's entire revenue of approximately Rs 29.8 crore, earned between the financial year 2023-24 and December 6, as "proceeds of crime" under Section 2(1)(u) of the PMLA. This classification means investigators are now actively hunting for the remaining assets to account for the full amount.
According to an ED statement, the investigation revealed systematic and deliberate fraud. "Investigation has brought to light that the partners, in active connivance with each other, knowingly continued the commercial operations of the establishment despite the absence and expiry of mandatory licences. Notably, the trade licence had expired and was not renewed," the ED said. The establishment generated total revenue amounting to approximately Rs 29.8 crore during this period through illegal operations, which has been designated as proceeds of crime.
Forged Documents and Blatant Violations
The ED detailed that the club's partners submitted forged fire No Objection Certificates (NOCs), fabricated health NOCs, and a forged police clearance certificate to regulatory authorities. These fake documents were used to obtain licences and project the establishment as legally compliant. The trade licence, obtained based on these fraudulent submissions, lapsed on March 31, 2024, and was never renewed. Despite this, the club continued operating for over a year after the expiry, in what the ED describes as "blatant violation of statutory requirements."
Search Operations and Legal Triggers
On January 23, ED search operations at multiple premises linked to the entity yielded incriminating documents, digital devices, and led to the freezing of bank accounts totalling approximately Rs 59 lakh. The ED probe was triggered by two First Information Reports (FIRs) registered by Goa police at Anjuna and Mapusa police stations against Saurabh Luthra and others. These FIRs were filed under provisions of the Bharatiya Nyaya Sanhita, 2023, covering both the fire tragedy and the large-scale forgery of statutory documents.
Ongoing Investigation and Historical Context
The December 6 fire remains one of the deadliest disasters in Goa's recent history, prompting intensified scrutiny. Investigators are now closing in on Luthra's remaining assets and those of his associates to recover the full proceeds of crime. ED officials have confirmed that further investigation is ongoing, as they work to unravel the full extent of the illegal activities and ensure accountability for the tragic loss of life.
