ED attaches properties worth Rs 71 crore in Vasai Virar illegal construction scam

Mumbai, Oct 14 (IANS) Immovable properties worth Rs 71 crore were attached by the ED in a case related to builders illegally carrying out construction on land belonging to the Vasai Virar City Municipal Corporation, an official said on Tuesday.

The Directorate of Enforcement (ED), Mumbai Zonal Office, provisionally attached the immovable properties belonging to the accused, namely Anil Pawar, Sitaram Gupta and others under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The ED initiated an investigation on the basis of multiple FIRs registered by the Mira Bhayandar Police Commissionerate against builders, local henchmen and others, said the official in a statement.

The case pertains to "illegal construction of residential cum commercial buildings on government and private land under jurisdiction of Vasai Virar City Municipal Corporation (VVCMC)" since 2009.

Over a period of time, 41 illegal buildings were constructed on the land reserved for "Sewage Treatment Plant" and "Dumping Ground" as per the approved development plan of Vasai Virar City.

The Bombay High Court, in its order dated July 8, 2024, ordered the demolition of all 41 buildings. Thereafter, an SLP was filed before the Supreme Court by the families residing in 41 illegal buildings, which was dismissed. The demolition of all 41 buildings was completed by VVCMC on February 20, 2025.

The ED investigation revealed that an organised cartel of VVCMC officer's including the Commissioner, Deputy Director Town Planner, Junior Engineers, Architects, CAs and agents.

In the Department responsible for taking action against illegal construction, Anil Pawar organised a cartel to extract bribes for giving protection to already constructed illegal buildings and turning a blind eye to the ongoing unauthorised constructions, the ED statement said.

The PMLA investigation revealed that a fixed commission rate of Rs 150 per square foot was imposed on illegal construction projects, of which Rs 50 per square foot of built-up area was directly received by Pawar as his share. Pawar also took a bribe to give protection to these 41 illegal, unauthorised buildings at the same rate.

Further in the Town Planning Department, PMLA investigation revealed that, after joining of Anil Pawar as Commissioner of VVCMC, he fixed the commission amount/bribe at the rate of Rs 20-25 per sq ft and Rs 62 per sq ft to give various types of development approvals in the Urban Zone and Green Zone, respectively.

The ED investigation revealed that through these modus operandi, Anil Pawar earned Proceeds of Crime (POC) to the tune of Rs 169 Crore. Consequently, Anil Pawar, IAS, Ex-Commissioner, was arrested on July 13, 2025, along with three others. All are presently in judicial custody.

A Prosecution Complaint in this case was filed on October 10, 2025. Cognisance of the same is yet to be taken by the Hon'ble Special PMLA Court.

The ED investigation revealed that Anil Pawar, IAS, created a number of entities in the name of his family members/relatives/benamidars to launder the bribe amount collected.

The POC so earned has been utilised by Pawar in purchasing Gold, diamond and Pearl Jewellery and expensive sarees; investing in Warehouses, purchasing Farmhouses, investing in a residential project floated in the name of his wife, amongst others.

Most of the POC have been infused in immovable properties by Pawar in the name of his wife, daughters and other relatives to project them as untainted properties. Total such properties to the tune of Rs. 44 Crore have been attached vide issuance of PAO.

Earlier, multiple search operations were carried out, in the case which led to cash seizure of Rs 8.94 crore, diamond-studded Jewellery and bullion worth Rs 23.25 crore and freezing of Bank Balances/ Shares/ Mutual Funds/FDs worth Rs 13.86 crore.

--IANS

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