Mumbai, July 25, 2026: The Enforcement Directorate (ED) has provisionally attached two immovable properties worth approximately Rs 332.24 crore, including the iconic Hotel Rangsharda in Bandra and a land parcel at Prabhadevi, in a money laundering case against Prabhudas Virchand Lotia and Rang Sharda Hotels Pvt. Ltd., officials said on Saturday.
The attachment, carried out under the Prevention of Money Laundering Act (PMLA), 2002, follows an investigation into allegations that land allotted at a concessional rate for promoting Marathi theatre, literature, and cultural activities was commercially exploited in violation of the terms of allotment.
According to the ED, the probe stems from an FIR registered by the Bandra Police on a complaint filed by the trustees of Rang Sharda Pratishthan, alleging cheating and criminal breach of trust by Lotia and Rang Sharda Hotels Pvt. Ltd. The complaint pertains to a land parcel allotted by the Maharashtra Housing and Area Development Authority (MHADA) to the trust for cultural purposes.
Land Allotment Under Scrutiny
Rangsharda is among Mumbai's most recognisable cultural landmarks. Located along the Bandra Reclamation seafront, the complex houses the Rangsharda Natyagruha, a theatre that has served as a key venue for Marathi plays, musical performances, and cultural events for decades. The land was allotted by the Maharashtra Housing and Area Development Authority (MHADA) to Rang Sharda Pratishthan at a concessional rate to promote Marathi theatre, literature, and the performing arts. However, the property's commercial use has been at the centre of legal disputes and public controversy for several years.
The agency alleged that Lotia, acting through Rang Sharda Hotels Pvt. Ltd., wrongfully appropriated and exercised control over the trust land and commercially exploited it in breach of the conditions of allotment and regulatory approvals.
Commercial Exploitation Alleged
The agency alleged that, instead of handing over the drama theatre and artists' accommodation to the trust as required under the agreement, the company operated a hotel, lodging house, restaurant, liquor bar, banquet facilities, and other commercial establishments from the premises without obtaining the requisite statutory approvals.
The ED further alleged that the company unauthorisedly sold commercial premises constructed on the trust land and used the proceeds to acquire another property at Prabhadevi in central Mumbai.
Also Watch:
According to the agency, the total proceeds of crime identified during the investigation have been estimated at around Rs 512 crore, including revenue generated from hotel operations, restaurants, banquet facilities, rentals, and other commercial activities.
To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/
