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The Enforcement Directorate has said Birch by Romeo Lane generated about Rs 22 crore over two fiscal years, suspecting the revenue to be proceeds of crime. (Express Photo by Pavneet Singh Chadha)
The Enforcement Directorate (ED) on Sunday said the entity that operated Birch by Romeo Lane, the nightclub in Goa where 25 people were killed in a fire on December 6, generated Rs 22 crore in revenue in the last two fiscal years and that this revenue is suspected to constitute proceeds of crime.
The Directorate of Enforcement, Panaji Zonal Office, earlier this week conducted searches at nine premises in Goa, Delhi and Gurgaon. The premises searched in Goa include those of the then-sarpanch of village panchayat Arpora-Nagoa, Roshan Redkar, and then-panchayat secretary Raghuvir Bagkar, who are alleged to have facilitated and issued trade licences and NOCs to the club to operate.
The ED said the searches form part of an investigation into alleged money-laundering activities linked to Saurabh Luthra, Gaurav Luthra and Ajay Gupta, the owners and partners of Birch by Romeo Lane.
The ED initiated the investigation on the basis of two FIRs registered by the Goa Police, which contain certain scheduled offences under the Prevention of Money Laundering Act (PMLA), 2002. Goa Police had booked the Luthra brothers and the club’s partners, manager, event organiser and other managing staff and charged the accused with culpable homicide.
The Luthra brothers, who ran the club, had taken a flight from Delhi to Phuket at 5.30 am on December 7, just hours after the incident, which took place just before midnight the previous day. The duo booked the tickets at 1.17 am on December 7 to flee the country, within 90 minutes of the blaze. They were later deported to India and arrested by the Goa Police. They are currently in judicial custody.
In a statement, the ED said 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.”
“During the course of search operations, it was revealed that the entity operating Birch by Romeo Lane generated revenue amounting to Rs 22 crore (approximately) during the financial year 2023-24 and financial year 2024-25. This revenue, prima facie, [is] suspected to constitute proceeds of crime, as the club was functioning without the necessary statutory licences and on the basis of forged No Objection Certificates/licences from various departments. Evidence relating to foreign remittances routed through group entities was also unearthed during the searches, and possible contraventions of relevant laws are being examined,” the ED said.
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“Further 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. Various incriminating documents and digital devices relevant to the investigation were recovered and seized during the searches. In addition, bank accounts of persons and entities suspected to be involved in holding proceeds of crime have been frozen under the provisions of the PMLA, 2002. The investigation is also focused on examining any possible corruption angle and subsequent laundering of proceeds of crime by other persons involved,” the statement added.
A magisterial inquiry, set up earlier this month to probe the fire at Birch by Romeo Lane, found that the local panchayat allegedly colluded with the owners of the property, allowing the club to be run illegally without a valid trade licence. The panchayat “failed in its statutory duty” and took no action to seal the property or shut its operations, according to the findings of the inquiry.
Pavneet Singh Chadha is the Goa Correspondent of The Indian Express. His reporting focuses intensely on the state of Goa, covering major developments in politics, governance, and significant local events, which establishes his high degree of Expertise and Authority in the region. Expertise Geographic Expertise: As the Goa correspondent, Pavneet provides on-the-ground, comprehensive coverage of Goa's political, social, and cultural landscape, ensuring readers receive timely and localized insights. Key Coverage Focus: His recent work demonstrates deep investigative capabilities and a focus on high-impact stories, including: Investigative Reporting: Extensive coverage of complex events such as major incidents (e.g., the Goa nightclub fire), tracing the legal, political, and safety lapses involved. Government and Law Enforcement: Detailed tracking of police actions, deportations, and legal proceedings related to significant local cases. Policy and Governance: Reporting on the judiciary (e.g., Goa High Court flagging illegal structures) and the actions of government departments. He tweets @pub_neat ... Read More
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