The Bombay High Court has directed the owners of the 'Birch by Romeo Lane' nightclub to deposit Rs 20 lakh each as interim compensation for the victims of the December 2025 fire. The owners, who are currently in custody, face serious criminal charges following the incident that resulted in 25 fatalities. This ruling highlights the significant legal and operational risks surrounding safety compliance within the hospitality sector.
The Bombay High Court has issued a directive requiring Saurabh and Gaurav Luthra, the owners of the 'Birch by Romeo Lane' nightclub in Arpora, Goa, to pay Rs 20 lakh each as interim compensation to the families of victims affected by the December 2025 fire tragedy. The division bench, led by Justices Valmiki Menezes and Amit Jamsandekar, mandated this payment as a preliminary step while legal proceedings continue regarding the incident.
The fire, which occurred on December 6, 2025, resulted in 25 deaths and left over 50 others injured during a dance event at the premises. In the aftermath of the disaster, investigations revealed severe safety lapses, including the absence of valid fire safety no-objection certificates and structural irregularities. These findings triggered a broader crackdown on nightlife venues across Goa to ensure adherence to building and fire safety regulations.
The owners of the nightclub are currently incarcerated at the Colvale Central Jail. Their legal situation remains complex; after initially fleeing the country, they were deported from Thailand in December 2025. In August 2026, the Supreme Court of India upheld the cancellation of their bail, ordering them to remain in custody while the trial for charges including culpable homicide not amounting to murder and forgery proceeds.
While this case involves a private business entity rather than a publicly listed company, it serves as a critical example of the financial and legal exposure that hospitality businesses face when failing to meet regulatory safety standards. Beyond the interim compensation, the owners face potential large-scale civil liabilities, as families of the victims are seeking damages of up to Rs 50 lakh per person. This litigation underscores the severe operational risks for similar businesses, where non-compliance can lead to permanent closure, seizure of assets, and heavy criminal liability.
The next hearing is scheduled for October 21, 2026. The court is expected to oversee the logistics of the compensation payments during this session, while an amicus curiae has been tasked with consolidating all pending legal claims associated with the tragedy to streamline the judicial process.