Rs32 Crore Seized in Vasai-Virar Illegal Construction Scam Linked to 41 Buildings
Moneylife Digital Team 15 May 2025
The Mumbai zonal office (II) of the directorate of enforcement (ED) has seized over Rs32 crore in unaccounted assets, including Rs9.04 crore cash and Rs23.25 crore in diamond-studded jewellery and bullion, following raids at 13 locations across Mumbai and Hyderabad. The action is part of a money laundering probe into a massive illegal construction scam in Vasai-Virar, involving forged municipal approvals, shell companies and alleged collusion with civic officials.
 
According to ED, the searches were carried out on 14th May and 15 May 2025 under the Prevention of Money Laundering Act (PMLA). The operation uncovered a syndicate accused of illegally constructing 41 mixed-use buildings on 60 acres of public land meant for sewage treatment and waste disposal, deceiving home-buyers with falsified clearance documents.
 
ED’s investigation is based on multiple first information reports (FIRs) registered by the Mira Bhayandar police commissionerate against builders, local agents and others for unauthorised development and large-scale fraud. The accused reportedly began constructing the illegal buildings in 2009, selling flats to unsuspecting buyers while being fully aware that the structures violated zoning laws and were liable to be demolished, the agency says.
 
Last year on 8th July, the Bombay High Court had ordered the demolition of all 41 buildings. A special leave petition (SLP) challenging the decision was dismissed by the Supreme Court, leading to the demolition of the structures by the Vasai Virar Municipal Corporation (VVMC) on 20 February 2025.
 
ED identified Sitaram Gupta, Arun Gupta, and several others as key players in the illegal construction racket. Crucially, the probe has revealed deep-rooted complicity by officials within VVMC.
 
During the raids, a significant portion of the seized assets—Rs8.6 crore in cash and the entire haul of jewellery and bullion—was recovered from the premises of YS Reddy, deputy director of town planning at VVMC. Officials also confiscated numerous incriminating documents believed to expose widespread abuse of power and large-scale forgery.
 
ED suspects the proceeds from the unauthorised real estate activity were laundered through shell firms and layered financial transactions to give them a veneer of legitimacy.
 
The agency said further action is likely as it analyses documents seized during the searches and investigates the money trail. The case adds to growing concerns over the nexus between rogue builders and complicit civic officials, and the systemic failure to prevent illegal urban sprawl in rapidly expanding satellite cities.
Comments
iaminprabhu
4 weeks ago
EVERY MUNICIPAL WARD (City, Town, Village), unauthorised construction of / within buildings, flats, commercial places, Footpaths, Slums, Tin shades, etc. HAPPEN BLATENTLY under the eyes of officials (who take CORRUPTION money to ignore)!

Unfortunately COURTS & GOVT. "punishment is not even 1%" on the OFFICIALS who ignored these unauthorized constructions while taking SALARIES at Taxpayers expenses for 10,20,30 years
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