Vasai-Virar construction scam: ED raids 12 sites, unearths Rs 1.33 crore in cash

The Enforcement Directorate (ED) has uncovered a deep-rooted nexus of corruption, illegal construction, and money laundering within the Vasai Virar Municipal Corporation (VVCMC), leading to a fresh round of raids that yielded cash seizures and incriminating evidence.

The latest development in the case came on Tuesday, when the Mumbai Zonal Office-II of the ED carried out search operations at 12 locations across Mumbai, Pune, Nashik, and Satana under the Prevention of Money Laundering Act (PMLA), 2002.

The probe is centred on former VVCMC Commissioner Anil Pawar, IAS, who allegedly led and orchestrated a cartel of civic officials, builders, and professionals engaged in rampant illegal construction and large-scale corruption.

During Tuesday's raids, the ED seized Rs 1.33 crore in cash and recovered a significant volume of incriminating documents, including property papers in the names of relatives and benamidars, cash and cheque deposit slips, and digital devices containing evidence of financial wrongdoing.

The ED launched its investigation following multiple FIRs filed by the Mira Bhayandar Police Commissionerate against a network of builders, local operatives, and civic officials.

The cases pertain to the unauthorised construction of 41 residential and commercial buildings on land earmarked for a sewage treatment plant and a dumping ground under the approved Vasai Virar development plan dating back to 2009.

Investigations found that developers not only erected illegal structures on reserved land but also duped unsuspecting homebuyers by fabricating approval documents and selling units in these buildings, despite knowing they were unauthorized.

In a landmark ruling, the Bombay High Court ordered the demolition of all 41 illegal structures on July 8, 2024. A subsequent appeal filed before the Supreme Court by affected families was dismissed, and the Vasai-Virar civic body completed the demolition process by February 20, 2025.

According to ED findings, the illegal construction was enabled by a well-organised cartel involving the VVCMC Commissioner, Deputy Director of Town Planning YS Reddy, junior engineers, architects, chartered accountants, and liaison agents.

Under Anil Pawar's tenure, the ED alleges a fixed commission rate of Rs 20-25 per square foot for the commissioner and Rs 10 per square foot for the deputy town planner on all projects.

Further scrutiny revealed that Pawar created multiple shell entities in the names of his family members and close associates to launder the bribe money he collected during his term. These entities operated primarily in high-cash sectors such as real estate redevelopment and warehouse construction, facilitating the absorption and routing of illegal proceeds.

Digital evidence seized during the raids reportedly confirms Pawar's direct involvement in nurturing the cartel, working closely with civic officials and external agents to greenlight unauthorised projects in exchange for bribes.

This week's raids follow earlier ED operations in the case that resulted in the seizure of approximately Rs 8.94 crore in cash, diamond-studded jewellery and bullion worth Rs 23.25 crore, and the freezing of financial assets - including bank balances, shares, mutual funds, and fixed deposits - amounting to Rs 13.86 crore.

The ED has stated that the investigation is ongoing.

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