The entities running the Goa nightclub where a fire killed 25 people last year generated ₹22 crore in revenues in the last two fiscals, an amount suspected to be “proceeds of crime” under the anti-money laundering law, the Enforcement Directorate said on Sunday.
“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,” the central agency 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.
The ED had on Friday conducted raids in Goa, Delhi and Haryana against the nightclub — Birch by Romeo Lane — and its promoters, including brothers Gaurav and Saurabh Luthra. The searches were part of an investigation into the alleged money-laundering activities linked to the owners.
“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,” the agency said.
A devastating fire broke out on December 6 at the club located in Goa’s Arpora village when around 100 people, mostly tourists, were enjoying a “musical night”. According to the Goa police’s FIR, the nightclub lacked basic fire safety measures and had no emergency exits on the deck or the ground floor.
The ED said a probe 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,” the ED said.
The ED’s money-laundering case stems from two FIRs filed by Goa police against the accused.