Mumbai: The Enforcement Directorate (ED) has attached Hotel Rangsharda in Bandra and a land parcel in Prabhadevi belonging to Rang Sharda Hotels Pvt Ltd, collectively worth Rs 332 crore, in connection with a money laundering case involving Prabhudas Virchand Lotia and others.It is alleged that Mhada had allotted a land parcel to Rang Sharda Pratishthan Trust at a concessional rate exclusively for the promotion of Marathi theatre, literature and cultural activities. But the accused had misused it by exploiting it commercially.The ED is investigating a money laundering case based on an FIR registered at Bandra police station, on a complaint by trustees of Rang Sharda Pratishthan who alleged cheating and criminal breach of trust committed by Lotia and Rang Sharda Hotels.
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The ED said that during the investigation, it found that Lotia, acting through Rang Sharda Hotels, wrongfully appropriated and exercised control over the land allotted to the Trust and commercially exploited the same in violation of the conditions of allotment and regulatory approvals.The ED said: “The investigation has further revealed that Rang Sharda Hotels Pvt Ltd failed to hand over the Drama Theatre and artists’ accommodation to the Trust as required and instead utilised the property for operating a hotel, lodging house, restaurant, liquor bar, banquet facilities and other commercial establishments without obtaining the requisite statutory approvals.”The ED said that Prabhudas Virchand Lotia caused unauthorised sale of commercial premises at the land allotted to Rang Sharda Pratishthan Trust and used such proceeds to acquire another property at Prabhadevi. The ED said the total proceeds of crime identified during the investigation have been estimated at approximately Rs 512 crore, including the revenues generated through hotel operations, lodging house, restaurant, liquor bar, banquet facilities, along with other income, including rents.
