ED attaches ₹10.66 crore properties in Patnitop hotels encroachment case
Synopsis
Key Takeaways
The Directorate of Enforcement (ED) has provisionally attached immovable properties worth ₹10.66 crore in the Patnitop Hotels Land Encroachment case, targeting illegal commercial activities and unauthorised construction by hotels in Udhampur district of Jammu and Kashmir. The action, announced on Monday, 2 November 2026, brings the cumulative value of provisionally attached assets in the case to ₹41.38 crore.
Properties Attached
The latest attachment covers land and buildings belonging to Hotel Holiday Inn, Hotel Broadway, Hotel Hollywood, and Hotel Mountview — all located in the Patnitop area of Udhampur district. The properties were seized under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, according to the ED's Jammu Sub-Zonal Office.
What the Investigation Found
The ED probe, initiated on the basis of an FIR registered by the CBI's Anti-Corruption Branch (ACB), Jammu, revealed a pattern of systematic violations. Hotel Holiday Inn, despite holding a sanctioned building permission, had raised unauthorised construction measuring 7,552.74 square feet beyond its approved plan. Hotel Broadway, Hotel Hollywood, and Hotel Mountview were found to have been commercially operated without the requisite permissions to function as hotels.
More broadly, the case involves hotels, guest houses, resorts, and residences in the Patnitop area that allegedly engaged in commercial use of residential buildings, excess construction beyond approved limits, and operations in prohibited zones — including dense forests, agricultural land, and residential areas. Investigators allege that officials of the Patni Top Development Authority (PDA) overlooked these compliance lapses.
CBI Charge Sheets and Legal Background
The Central Bureau of Investigation (CBI) filed six charge sheets in 2023 against eight hotel owners (covering six hotels) and several PDA officials. The charges were framed under the Jammu and Kashmir Prevention of Corruption Act, the Ranbir Penal Code, the Registration of Tourist Trade Act, 1978, and the Jammu and Kashmir Forest Act, 1987. The ED's money laundering investigation runs parallel to this criminal prosecution.
Cumulative Enforcement Action
This is not the first attachment in this case. The ED had issued two Provisional Attachment Orders in 2025, covering properties worth ₹30.72 crore. The latest action adds ₹10.66 crore to that total, taking the aggregate provisional attachment in the Patnitop encroachment case to ₹41.38 crore. The attached hotel buildings, unauthorised structures, appurtenant land, and equivalent-value properties have been classified as Proceeds of Crime by the ED.
With the CBI prosecution and ED money-laundering proceedings running concurrently, further asset attachments and trial developments in the case are likely to follow in the coming months.