ED Investigation Uncovers Financial Irregularities in Tragic Goa Nightclub Fire Case
The Enforcement Directorate (ED) in Panaji has made significant discoveries in its ongoing investigation into the devastating Birch by Romeo Lane nightclub fire that claimed 25 lives on December 6. The probe has revealed substantial financial irregularities, including evidence of foreign remittances routed through group entities and potential contraventions of multiple laws.
Massive Revenue Generated Without Proper Licenses
According to the ED's findings, the nightclub generated an astonishing Rs 22 crore in revenue during the last two financial years. What makes this figure particularly concerning is that this revenue is prima facie suspected to constitute proceeds of crime, as the establishment was operating without necessary statutory licenses.
The investigation revealed that the club functioned on the basis of forged no objection certificates and licenses from various departments, with serious irregularities in statutory compliance identified during the searches.
Nationwide Searches and Evidence Collection
The ED conducted comprehensive searches at nine premises across Goa, New Delhi, and Gurugram under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. These locations included the premises of the sarpanch and secretary of Arpora-Nagao panchayat, as part of the probe against Saurabh Luthra and other individuals involved.
During these operations, investigators recovered various incriminating documents and digital devices relevant to the money laundering investigation. The agency also froze bank accounts of persons and entities suspected to be involved in holding proceeds of crime under PMLA provisions.
Foreign Remittances and Fund Diversion
One of the most significant findings involves evidence relating to foreign remittances routed through group entities. The ED is currently examining possible contraventions of relevant laws connected to these international financial transactions.
Furthermore, the investigation revealed that funds amounting to 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.
Foundation of the Investigation
The ED investigation was initiated based on two FIRs registered by the Goa police, which contain certain scheduled offences under the PMLA. The searches confirmed that the nightclub continued commercial activities despite the absence of mandatory approvals from competent authorities.
The agency is now focusing on examining any possible corruption angle and subsequent laundering of proceeds of crime by other persons involved in the case. The investigation continues to uncover the complex financial network behind the tragic incident that shocked Goa and the nation.
