The owner of the south Delhi hotel where a fire claimed 21 lives earlier this week had been arrested in 2025 for allegedly facilitating the illegal stay of Bangladesh nationals through fraudulently obtained Indian documents, police records show.

Lavkesh Bajaj, proprietor of Flourish Stays B&B in Malviya Nagar, is currently in four-day police custody in connection with the devastating fire that broke out at the establishment on Wednesday. Investigators are probing the circumstances surrounding the blaze and searching for other persons associated with the hotel's management.

According to police, Bajaj was among the accused in a case registered at Paharganj police station on January 29, 2025, over the alleged illegal stay of Bangladesh nationals in central Delhi using Indian identity documents obtained through fraudulent means.

The case was registered under various provisions of the Bharatiya Nyaya Sanhita (BNS).

During the investigation, police found that two women identified as Sweety Sarkar alias Beauty Hawladar alias Johra Khatoon and her daughter Pushpo Sarkar alias Pushpo Hawlader alias Puspo Saiyada Akther, along with Pushpo's minor son, were residing in a house in Paharganj allegedly on the basis of fraudulently procured Indian documents, including passports and Aadhaar cards.

Police said the investigation revealed that Sweety Sarkar had obtained an Indian passport using an address in Chattarpur Enclave in south Delhi.

Verification of the address allegedly established that the property belonged to Bajaj.

"During interrogation, Lovekesh Bajaj admitted that he had knowingly permitted the accused persons to use his residential address for obtaining Indian identity documents in lieu of monetary consideration, thereby facilitating their illegal stay in the country," a senior police officer said.

Based on the findings, Bajaj, Sweety Sarkar and Pushpo Sarkar were arrested in the case. Upon completion of the investigation, police filed a chargesheet against the three accused before a court. A Police Information Report was also submitted regarding the minor child for action as per law, officials said.

The disclosure has come amid the ongoing investigation into the fire at Flourish Stays, which killed 21 people, including several foreign nationals, and left many others injured.

Bajaj was arrested on Wednesday evening in connection with the fire case. After he was produced before a court, investigators sought his police remand, saying they needed to verify details of workers, employees and other persons involved in the operation of the establishment and trace individuals linked to its management.

Police said efforts are underway to locate and question the establishment's accountant and manager as part of the probe.