The Enforcement Directorate (ED), Mumbai Zonal Office, has issued a Provisional Attachment Order involving Prabhudas Virchand Lotia and others, attaching two properties valued at around Rs 332.24 crore, including a Bandra Hotel. The attached properties consist of Hotel Rangsharda in Bandra and a land parcel in Prabhadevi, both under the possession of Rang Sharda Hotels Private Limited. The ED’s action stems from an investigation initiated based on an FIR filed by Bandra Police Station following a complaint by the Trustees of Rang Sharda Pratishthan.
The investigation, conducted under the Prevention of Money Laundering Act, 2002, found that Prabhudas Virchand Lotia, through Rang Sharda Hotels, misused the land allotted to the Trust for commercial purposes in violation of regulations. It was revealed that Rang Sharda Hotels did not hand over the Drama Theatre and artists’ accommodation to the Trust as required but utilized the property for various commercial activities without proper approvals. Lotia, through Rang Sharda Hotels, also engaged in unauthorized sale of commercial premises on the allotted land and used the proceeds to acquire another property in Prabhadevi.
The total Proceeds of Crime identified in the investigation amount to Rs 512 crore, encompassing revenues from hotel operations, lodging house, restaurant, liquor bar, banquet facilities, and other sources like rentals.
