Iconic Mumbai Hotel Attached By ED Amid Money Laundering Probe
Rang Sharda Hotels operated a hotel, restaurant and bar on the premises without transferring the theatre and artists' residential units to the trust, as required under the terms of the allotment.
The Enforcement Directorate (ED) has attached the iconic Rang Sharda Hotel in Mumbai's Bandra as part of its ongoing money laundering investigation, alleging that the property was developed and commercially exploited in violation of the terms under which the land was originally allotted.
According to the ED, the attached assets are valued at ₹332 crore. The agency's action is part of its probe against Prabhudas Lotiya in the alleged Rang Sharda Hotels fraud case.
The ED alleged that the land was allotted by the Maharashtra Housing and Area Development Authority (MHADA) at a concessional rate for cultural activities. However, instead of being used for its intended purpose, the property was commercially exploited.
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According to the agency, Rang Sharda Hotels operated a hotel, restaurant and bar on the premises without transferring the theatre and artists' residential units to the trust, as required under the terms of the allotment.
The ED further alleged that proceeds generated through the illegal sale of commercial spaces were used to acquire other properties.
The agency said its investigation has identified proceeds of crime worth around ₹512 crore.
The probe is being conducted under the provisions of the Prevention of Money Laundering Act (PMLA) in connection with allegations of money laundering and criminal breach of trust.
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