Home / Crime and Justice / ED Seizes Rs 332 Cr Mumbai Hotel in Money Laundering Probe
ED Seizes Rs 332 Cr Mumbai Hotel in Money Laundering Probe
25 Jul
Summary
- Hotel Rangsharda and Prabhadevi land attached by ED worth Rs 332 crore.
- Accused allegedly misused land allotted for Marathi cultural promotion.
- Total crime proceeds estimated at Rs 512 crore, including hotel revenue.
The Enforcement Directorate (ED) has initiated significant action by attaching properties worth Rs 332 crore belonging to Rang Sharda Hotels Pvt Ltd. These attached assets include the prominent Hotel Rangsharda in Bandra and a land parcel located in Prabhadevi. This action stems from an ongoing money laundering investigation concerning Prabhudas Virchand Lotia and associated individuals.
The investigation revealed that a land parcel, initially allotted by Mhada to the Rang Sharda Pratishthan Trust at a subsidized rate for promoting Marathi theatre and culture, was allegedly misused. It is alleged that the accused commercially exploited this land, violating the terms of its allotment.
The ED's probe, based on an FIR filed at Bandra police station, indicates that Lotia, through Rang Sharda Hotels, wrongfully controlled and commercially exploited the Trust's land. The hotel and other establishments operated without requisite approvals, failing to transfer the Drama Theatre and artists' accommodation back to the Trust.
Furthermore, it is alleged that Prabhudas Virchand Lotia facilitated the unauthorized sale of commercial premises on the allotted land. The proceeds from these sales were allegedly used to acquire the Prabhadevi property. The total estimated proceeds of the crime identified by the ED amount to approximately Rs 512 crore, including revenues from hotel operations, lodging, restaurant, bar, and rental income.
