ED calls Rs 22 cr revenue generated by Goa nightclub as proceeds of money laundering crime
New Delhi: The entities running the Goa-based nightclub, where 25 people were killed in a fire last year, generated revenue of Rs 22 crore in the last two fiscals, an amount suspected to be "proceeds of crime" under the anti-money laundering law, the ED said on Sunday.
The revenue was suspected to be proceeds of crime as the facility was allegedly being operated without statutory licenses, the agency said.
The federal probe agency conducted raids in Goa, Delhi and Haryana on January 23 against 'Birch by Romeo Lane' club and its promoters, including brothers Gaurav and Saurabh Luthra.
A devastating fire broke out on December 6, 2025 at the facility located in Goa's Arpora village, when it was hosting a dance party. As many as 50 people were injured in the incident.
The Enforcement Directorate (ED) said in a statement that the "searches show 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."
It was also found during the raids, the ED said, that the entity operating the nightclub generated revenue of about Rs 22 crore during the financial years of 2023-24 and 2024-25.
"This revenue, prima facie, 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," the ED alleged.
It added that funds worth 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.
Some bank accounts of persons and entities suspected to be involved in holding the proceeds of crime have been frozen under the provisions of the Prevention of Money Laundering Act (PMLA) during the searches, it said.
"Evidence relating to foreign remittances routed through group entities was also unearthed during the searches, and possible contraventions of relevant laws are being examined," it added.
The ED investigation is also focused on examining any "possible" corruption angle and subsequent laundering of proceeds of crime by other persons involved, it said.
The money laundering case stems from two FIRs filed by Goa police against the accused.
The Goa police has arrested eight people till now in this case, including the Luthra brothers who are alleged to have fled the country hours after the incident and travelled to Thailand. They were later deported to India on December 17 last year and are currently in the custody of Goa police.
Goa Chief Minister Pramod Sawant had informed the state assembly early this month that the nightclub operated under different names over the years and that his government will conduct a probe into its violations since 1999.
The ED had raided the premises of the Luthras and co-owner Ajay Gupta located at Kingsway Camp in the national capital, Tatvam Villas in Gurugram (Haryana) apart from that of former sarpanch of Arpora-Nagoa Roshan Redkar and ex-panchayat secretary Raghuvir Bagkar in Goa on Friday.
Redkar and Bagkar are alleged to have facilitated and issued illegal trade licences and NOCs for the club, the ED officials said.
The two have been arrested by the police.
ED officials also visited the premises of Surinder Kumar Khosla, a British national and also one of the owners of the club, to examine the money laundering angle arising from the illegal conversion of 'khazan' land (salt pan) on which the Birch by Romeo Lane club was located.
Goa police has got issued a Red Notice from the Interpol against Khosla as he is not present in India.
