The city police today arrested four persons in connection with the unauthorised construction at Satyam Lodge here where a prostitution racket was allegedly operating.
The lodge hit headlines when the civic authorities found several rooms constructed underground.
DCP Sunil Lokhande said police today arrested Kishore Bhatia (57) and Dilip Bhatia (58) who owned the lodge, and Chanappa Gonda (38) and Janardan Poojari (37) who ran it.
The anti-encroachment team of Thane Municipal Corporation demolished the lodge two days ago.
A case under the Immoral Trafficking (Prevention) Act was registered by Thane police's Anti Human Trafficking Cell.
The corporation officers found that there were several rooms below the ground level. The lodge was being allegedly used for prostitution, as per the police complaint.
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