The Bombay High Court’s Goa bench, comprising Justice Dr Neela Gokhale, has cancelled the bail granted to Sourabh Luthra, Gaurav Luthra, and Ajay Gupta, co-owners of Birch By Romeo Lane, a nightclub in North Goa’s Arpora area, which was destroyed in a fire on August 18, 2026, resulting in the deaths of 25 persons.
The court held that the Sessions Court had improperly exercised its discretion in granting bail, noting that the order granting bail contained no consideration of the enormity of the offence or the gravity of the allegations against the respondents. Justice Gokhale observed that a plain reading of the Sessions Court’s order revealed no engagement with the seriousness of the incident, which involved loss of life and widespread injury.
The bench emphasized that the Sessions Court had, in its earlier order denying bail, specifically found the restaurant to be a manifestly hazardous environment, exposing patrons and staff to a foreseeable risk of fire due to the use of combustible roofing material and the conduct of cold pyro fireworks during belly dance performances. The court noted that the respondents were aware of these dangers yet proceeded without adequate safety measures.
While granting bail, the Sessions Court relied solely on the filing of the charge sheet as a changed circumstance, without examining any substantive material within it to justify a reversal of its earlier stance. Justice Gokhale held that merely filing a charge sheet does not constitute a sufficient change in circumstances to warrant bail, especially when the Sessions Court failed to record any findings contrary to its earlier conclusion that the premises were unsafe and operated without licences.
The High Court further noted from witness statements that soundproof glass had been installed at the respondents’ direction, which prevented smoke from escaping during the fire. No fire extinguishers were present, no emergency exit existed from the kitchen, and staff had received no training to handle fire incidents. The restaurant was operating without valid licences, and the structure itself was unauthorised, meaning that even if licences had been obtained, compliance with safety regulations would have been mandatory.
The bench concluded that the respondents’ deliberate omission to install safety systems and adhere to norms directly caused the fire, which led to 25 fatalities and numerous injuries. The Sessions Court’s failure to consider the investigative material, including evidence of the respondents’ complicity, rendered its bail order untenable.
Justice Gokhale also pointed out that the Sessions Court’s finding on flight risk contradicted the record, as one of the respondents had fled to Phuket, Thailand, and was only apprehended after the issuance of a non-bailable warrant and proclamation.
Accordingly, the High Court cancelled the bail granted by the Sessions Court and directed the three respondents to surrender before the Sessions Court within two weeks from the date of the order’s uploading. The court reiterated that the gravity of the offence must not be undermined and that bail cannot be granted where there is a failure to apply mind to the evidence and the circumstances of the case.