The hotel belonged to NRI Harbhajan Singh Chopra of the UK and is estimated to be worth Rs 300 crore, according to Punjab Congress spokesman Sukhpal Singh Khaira.
Khaira said he had video grabs of the NRI couple in which they narrated how the hotel was allegedly usurped by the SAD leader's close aide Krishan Kumar.
He alleged that Kumar implicated the couple in a false extortion case after they filed a recovery suit of Rs 12 crore against the hotel.
Khaira also claimed that the Chopras were robbed of jewellery worth Rs 50 lakh, another Rs 50 lakh from the sale of land belonging to them in village Jadla in Nawanshahar and Rs 30 lakh from the proceeds of a car.
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Rubbishing the allegations a spokesman the deputy CM said, "Congress has become frustrated after becoming politically irrelevant in Punjab."
He said the Badal family had nothing to do with Kumar and there was no question of patronising him.
"The Congressmen out of frustration have lost their mental balance and levelling baseless allegations to tarnish the image of Badal family," he said.