The Enforcement Directorate (ED) has claimed that the entity operating the Goa nightclub Birch by Romeo Lane, which was gutted in a devastating fire that claimed 25 lives, generated nearly ₹22 crore in revenue over the past two financial years, and that the amount constitutes proceeds of crime under the Prevention of Money Laundering Act (PMLA).
According to the ED, the revenue was earned during FY 2023–24 and FY 2024–25, a period during which the nightclub was allegedly operating without mandatory statutory licences and approvals. The agency said the funds generated through the illegal operation of the establishment were subsequently diverted through multiple channels, prompting a full-fledged money-laundering investigation.
As part of the probe, the ED conducted search operations at nine locations across Goa, Delhi and Gurugram. The searches, the agency said, uncovered serious irregularities related to the issuance of trade licences and no-objection certificates (NOCs). Preliminary findings indicate that the club allegedly secured permissions using forged and fabricated documents, allowing it to continue operations despite the absence of valid approvals.
The money-laundering investigation is focused on Saurabh Luthra, Gaurav Luthra and Ajay Gupta, identified as the owners and partners of Birch by Romeo Lane. The ED stated that the probe was initiated on the basis of two FIRs registered by the Goa Police, which include scheduled offences under the PMLA, 2002.
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Goa Police have alleged that the club’s owners, partners, manager, event organiser and other members of the management were responsible for gross violations of safety and licensing norms. The accused have been booked under serious charges, including culpable homicide, in connection with the fire that broke out at the nightclub in Arpora in December.
Investigators have also pointed to the conduct of Saurabh Luthra and Gaurav Luthra in the immediate aftermath of the incident. According to records examined by the agencies, the two allegedly booked international flight tickets within 90 minutes of the blaze and attempted to leave the country just hours after the fire. They were later deported back to India and arrested. Both are currently in judicial custody.
The ED said that during the searches, it found evidence suggesting that a portion of the revenue earned by the club was transferred to personal bank accounts of individuals and to accounts of other entities linked to the group. Several digital devices and incriminating documents were seized, which the agency said are crucial to tracing the flow of funds.
In addition, the ED has frozen multiple bank accounts under the provisions of the PMLA, suspecting them to be holding proceeds of crime. The agency is also examining foreign remittances linked to group entities to determine whether any part of the funds was routed abroad in violation of Indian laws.
The investigation has also widened to examine a possible corruption angle, particularly the role of local authorities in facilitating the club’s operations. A magisterial inquiry constituted after the fire has already flagged serious lapses by the local panchayat. The inquiry report stated that the panchayat allegedly colluded with the property owners and failed to act despite the absence of a valid trade licence.
The report further noted that the panchayat did not fulfil its statutory duty and failed to seal the premises or shut down operations, even though the club was functioning illegally. These findings are now part of the broader probe into how the establishment continued operations without meeting basic legal and safety requirements.
Officials familiar with the investigation said the ED is now focused on establishing the entire laundering trail, identifying the ultimate beneficiaries of the funds and determining how the money generated from the illegal operation was utilised. Further arrests and attachment of properties cannot be ruled out as the probe progresses.
The case has brought renewed scrutiny on regulatory enforcement and safety compliance in Goa’s nightlife sector, particularly the functioning of commercial establishments operating in violation of statutory norms.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
