Goa club fire: Were Luthra brothers engaged in money laundering?
What's the story
Saurabh and Gaurav Luthra, the owners of the ill-fated Birch by Romeo Lane club in Goa, are now embroiled in a web of corporate fraud. The duo has been accused of running a network of shell companies under the pretext of their successful restaurant businesses. The allegations come after a tragic fire incident at their nightclub that claimed 25 lives.
Corporate web
42 companies, same address: A suspicious pattern
The Luthra brothers are listed as directors or partners in 42 different companies, all sharing the same registered address at 2590, Ground Floor, Hudson Line, Delhi. This unusual pattern of firms with a common location has raised red flags among financial watchdogs and authorities. Experts say such a structure usually indicates possible motives for tax evasion and money laundering.
Expansion doubts
International presence but no operational branches
Despite claiming an international presence in Thailand, the Luthra brothers have no operational branches or customer reviews to back their business expansion. This has fueled suspicions about their corporate activities. Financial watchdogs are now investigating possible corporate fraud and unexplained financial transactions within these companies.
Business profile
Business empire and controversies
The Luthra brothers are first-generation hoteliers who entered the hospitality sector in 2016 with Mama's Buoi, a nightclub in Delhi. They later launched Dramebaaz, a fast-food joint, and expanded their brand Romeo Lane into a chain across 37 Indian cities. Their business also extends to Dubai and London with plans for New York. However, their Goa establishments have been embroiled in controversies over lack of permissions and alleged violations of coastal regulation zone rules.
Legal troubles
Luthra brothers detained in Thailand, facing legal proceedings
The Luthra brothers were recently detained by Thai police at Hotel Indigo in Patong. Their passports have been suspended and they are currently being held at a detention center in Phuket. They will be handed over to Indian officials for deportation to face legal action over the Goa club fire incident. A Delhi court has already dismissed their anticipatory bail plea amid these ongoing investigations.