The Enforcement Directorate (ED) has filed a chargesheet against 18 accused, including former Vasai-Virar Municipal Commissioner Anilkumar Pawar and suspended Deputy Director of Town Planning Y. S. Reddy, in connection with an alleged corruption and money-laundering case linked to illegal construction projects in the Vasai-Virar region, officials said on Friday.
ED issued an attachment order under the PMLA in respect of assets valued at Rs 71 crore, belonging to implicated builders and accused individuals, in connection with the ongoing investigation into the laundering of proceeds of crime generated from the illegal construction activities.
According to the ED’s findings, officials and intermediaries involved in the municipal planning and approval process allegedly used coded references to record the distribution of bribe amounts among different levels of officers. The agency claims to have recovered notations indicating initials or symbols referring to junior and senior officials, suggesting a systematic method of “sharing” the proceeds of alleged kickbacks.
As per the investigation, bribe amounts were allegedly calculated based on the area of the illegal construction projects. For the then commissioner, the rate was around Rs 20-25 per sq ft, and for the then deputy director (Reddy), about Rs 10 per sq ft. To disguise the money trail, codewords such as ‘A’, ‘B’, and ‘C’ were reportedly used to denote different officials and their share of the collected amounts.
Lower-level officials were allegedly paid between Rs 2 and Rs 5 per sq ft, depending on their role in the project’s approval process. The ED has also named former corporator Sitaram Gupta and Arun Gupta, noting their alleged involvement in coordinating the flow of funds and documentation through shell firms and intermediaries.
Earlier, the ED had conducted searches at 12 locations, including premises in Vasai-Virar, Mumbai, Pune, and Nashik, linked to the accused. During these operations, officials seized Rs 1.33 crore in cash from a relative’s residence in Nashik and recovered several property documents.
Searches at locations connected to Reddy led to the seizure of Rs 8.6 crore in cash and jewellery worth Rs 23.25 crore, including diamond-studded ornaments and gold. Multiple documents related to real estate investments, MoUs, and suspected benami properties were also found.
The ED’s probe has indicated that a network of junior engineers, architects, chartered accountants, and middlemen allegedly worked together to regularise or overlook unauthorised buildings in exchange for bribes. The agency suspects that some of the money was channelled through shell companies and used for property purchases in Nashik and Pune.
The investigation also follows a July 8, 2024 order of the Bombay High Court, which had directed the demolition of 41 illegal structures in the Vasai-Virar region. A subsequent Special Leave Petition (SLP) filed by residents was dismissed by the Supreme Court, and the Vasai-Virar Municipal Corporation went on to demolish all 41 structures on 20 February 2025.
