Mumbai, July 25 (SocialNews.XYZ) The Directorate of Enforcement (ED), Mumbai Zonal Office, has issued a Provisional Attachment Order in the case of Prabhudas Virchand Lotia and others, attaching two immovable properties, including a Bandra Hotel, having an aggregate value of approximately Rs 332.24 crore, an official said on Saturday.
The attached properties include Hotel Rangsharda situated at Bandra, Mumbai, and a land parcel located at Prabhadevi, Mumbai, which are under the possession and control of Rang Sharda Hotels Private Limited.
The ED initiated investigation based on FIR registered by Bandra Police Station, Mumbai, on a complaint lodged by the Trustees of Rang Sharda Pratishthan regarding offences of cheating and criminal breach of trust allegedly committed by Prabhudas Virchand Lotia and Rang Sharda Hotels in relation to a land parcel allotted by MHADA to Rang Sharda Pratishthan Trust at a concessional rate exclusively for the promotion of Marathi theatre, literature and cultural activities.
The investigation conducted under the provisions of the PMLA, 2002, in the matter revealed that Prabhudas Virchand 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 further revealed that Rang Sharda Hotels 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.
Prabhudas Virchand Lotia, acting through Rang Sharda Hotels, caused unauthorised sale of commercial premises at the land allotted to Rang Sharda Pratisthan Trust and used such proceeds to acquire another property at Prabhadevi, Mumbai, the ED.
The total Proceeds of Crime identified during the investigation have been estimated at Rs 512 crore, including the revenues generated through hotel operations, lodging house, restaurant, liquor bar, banquet facilities along with other income, including rentals, the ED said.
Source: IANS
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