Vasai-Virar Construction Scam, ED Conducts Raids at 12 Sites, Recovers Rs 1.33 Crore in Cash

The Enforcement Directorate (ED) intensified its probe into the Vasai-Virar Municipal Corporation (VVCMC) construction scam, conducting raids at 12 locations across Mumbai, Pune, Nashik, and Satana on Tuesday, under the Prevention of Money Laundering Act (PMLA), 2002.

The investigation has exposed a deep-seated nexus of corruption, illegal construction, and money laundering within VVCMC. During the raids, the ED recovered Rs 1.33 crore in cash, along with a substantial volume of incriminating documents, including property papers registered in the names of relatives and benamidars, deposit slips, and digital devices containing evidence of financial misconduct.

The probe focuses on former VVCMC Commissioner Anil Pawar, IAS, who is alleged to have orchestrated a cartel comprising civic officials, builders, and professionals engaged in large-scale corruption and unauthorised construction.

The ED launched the investigation following multiple FIRs filed by the Mira Bhayandar Police Commissionerate against a network of local operatives, builders, and municipal officials. The cases involve the unauthorised construction of 41 residential and commercial buildings on land earmarked for a sewage treatment plant and a dumping ground, under the Vasai-Virar development plan approved in 2009.

Investigations revealed that developers not only built illegal structures on reserved land, but also misled unsuspecting homebuyers by forging approval documents and selling units despite knowing the constructions were unauthorised.

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

ED findings indicate that the illegal constructions were facilitated by a well-organised cartel, including the VVCMC Commissioner, Deputy Director of Town Planning YS Reddy, junior engineers, architects, chartered accountants, and liaison agents. Allegedly, under Pawar’s tenure, a fixed commission rate of Rs 20-25 per square foot was levied for the commissioner, and Rs 10 per square foot for the deputy town planner on all projects.

Further scrutiny revealed that Pawar allegedly set up multiple shell companies in the names of family members and close associates to launder bribe money collected during his tenure. These entities operated mainly in high-cash sectors such as real estate redevelopment and warehouse construction, enabling the circulation of illicit proceeds.

Digital evidence seized during the raids reportedly confirms Pawar’s active involvement in managing the cartel, collaborating with civic officials and external agents to approve unauthorised projects in exchange for bribes.

These raids follow earlier ED operations in the case, which led to the seizure of around 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 remains ongoing.