The Directorate of Enforcement (ED) has provisionally attached immovable properties valued at Rs 10.66 crore under the Prevention of Money Laundering Act (PMLA), 2002, in connection with an ongoing investigation into land encroachment involving hotels in the Patnitop area. This latest action brings the cumulative value of attached properties in the case to Rs 41.38 crore.
The properties seized include the land and buildings of four prominent hotels: Hotel Holiday Inn, Hotel Broadway, Hotel Hollywood, and Hotel Mountview, all situated in the popular tourist destination of Patnitop within the Udhampur district of Jammu and Kashmir. According to an official statement released by the ED, the investigation was initiated based on a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI), Anti-Corruption Bureau (ACB), Jammu. The FIR targeted owners and directors of various hotels, guest houses, resorts, cottages, and residential properties in the Patnitop region, as well as officials associated with the Patnitop Development Authority (PDA).
Information reaching Tahir Rihat suggests that the allegations central to the investigation revolve around the commercial exploitation of land designated for residential use, the construction of structures exceeding approved limits, and the operation of commercial establishments in areas strictly prohibited for such activities. These prohibited zones include ecologically sensitive dense forest areas, agricultural land, and residential zones. The probe also scrutinizes alleged derelictions of duty by PDA officials in enforcing prescribed rules and regulations, thereby facilitating these violations.
In 2023, the CBI filed six chargesheets against eight hotel owners linked to six different hotels, along with several PDA officials. These chargesheets were filed under various provisions of the Jammu and Kashmir Prevention of Corruption Act, the Ranbir Penal Code, the Registration of Tourist Trade Act of 1978, and the Jammu and Kashmir Forest Act of 1987. The ED’s subsequent investigation delved deeper into the financial aspects of these alleged transgressions, focusing on the proceeds generated through these unauthorized activities.
The ED’s investigation revealed specific instances of non-compliance. For example, Hotel Holiday Inn, despite possessing sanctioned building permissions, was found to have undertaken unauthorized construction spanning 7,552.74 square feet beyond its approved building plan. Further inquiries indicated that Hotel Broadway, Hotel Hollywood, and Hotel Mountview were operating as commercial establishments without obtaining the necessary requisite permissions to function as hotels. This operational status without proper authorization is a key element in the ED’s assessment of proceeds of crime.
Consequently, the ED has provisionally attached the hotel buildings, the unauthorized constructions, the appurtenant land, and other identified properties. The value of these attached assets is deemed equivalent to the proceeds generated through such unauthorized commercial exploitation. These assets are now considered proceeds of crime under the PMLA. This action follows previous measures taken by the ED in the same case. Earlier in 2025, the ED had issued two provisional attachment orders, leading to the attachment of properties worth Rs 30.72 crore. The current attachment of Rs 10.66 crore escalates the total value of provisionally attached properties in this Patnitop land encroachment case to Rs 41.38 crore, underscoring the scale of the alleged financial irregularities and the ED’s intensified efforts to recover illicit gains.
Tahir Rihat (also known as Tahir Bilal) is an independent journalist, activist, and digital media professional from the Chenab Valley of Jammu and Kashmir, India. He is best known for his work as the Online Editor at The Chenab Times.
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