Deadly fire exposes Goa nightclub scam, ED raids 9 locations

The Directorate of Enforcement (ED) has conducted search operations at nine locations in Goa, New Delhi and Gurugram to investigate under the Prevention of Money Laundering Act (PMLA) 2002. The investigation currently underway involves multiple searches that are connected to suspected money laundering activities at the Birch nightclub located in Arpora, Goa.

The search locations included premises linked to Saurabh Luthra and others, as well as the residences of the Sarpanch and Secretary of the Arpora Nagao Panchayat.

The case is linked to a tragic fire incident at the nightclub that led to the death of 25 people.

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Probe linked to Goa nightclub fire tragedy

The ED investigation began based on two FIRs registered by the Goa Police. These FIRs contain offences that fall under the PMLA law.

According to the ED, the nightclub was allegedly operating without proper approvals and licences. The tragedy has brought serious safety and regulatory violations in the institution under the spotlight.

The agency is now examining whether illegal earnings from the club were later used or moved in ways that violate money laundering laws.

How were licences allegedly obtained?

During the searches, the ED discovered major violations of legal requirements. The investigators discovered that multiple licenses were obtained through fraudulent documentation.

The probe also revealed that the nightclub continued to run commercial activities even without mandatory approvals from the required authorities. Fake No Objection Certificates (NOCs) and licences from different departments were allegedly used to keep the club operational.

These findings form a key part of the money laundering investigation.

Rs 22 crore revenue under ED scanner

The ED reported that the Birch operation, which ran from Romeo Lane, generated approximately Rs 22 crore in earnings during the fiscal years 2023 and 2024 and 2024 and 2025.

The nightclub operation, which was alleged to operate without legal permission, generated income that authorities suspect to be Proceeds of Crime. The ED believes that the money earned during this period came from activities carried out without valid licences and approvals.

Investigators are also examining foreign remittances that were routed through group companies. Possible violations of other laws are currently under review.

Funds diverted to personal and group accounts

Further investigation showed that crores of rupees earned from the illegal operation of the nightclub were allegedly diverted to personal bank accounts of individuals and also transferred to accounts of other group entities.

During the searches, the ED seized incriminating documents and digital devices that are relevant to the case. Based on the findings, the agency has frozen multiple bank accounts of persons and entities suspected of holding Proceeds of Crime under the PMLA, 2002.

Corruption angle also being examined

The ED is also looking into a possible corruption angle in the case. The investigation includes checking whether public officials or other individuals helped in laundering the illegal funds.

Two persons from this group have received arrest warrants from the Goa Police, who are currently investigating their connection to the ongoing investigation.

The ED has announced that they continue their investigation work while additional legal measures will be taken as the case development proceeds.