The Enforcement Directorate’s (ED) prosecution complaint (PC) filed before the Special PMLA Court in connection with the probe into illegal constructions in Vasai-Virar has exposed a well-organised “code word cartel” operating within the Vasai-Virar City Municipal Corporation (VVCMC), where illicit proceeds and assets worth over Rs 291 crore were allegedly generated.
ED officials stated that WhatsApp chats and Excel sheets seized during raids revealed the intricate code system used to manage payoffs among senior officers. According to the complaint, a network of civic officers, architects, liaison agents, and developers operated together to approve and protect illegal constructions across Vasai-Virar and these codes were allegedly used to collect, track, and distribute illicit proceeds among the accused.
Code words
The ED has decoded a unique set of references used to track illicit money: “C” stood for former VVCMC Commissioner Anil Kumar Pawar, “D” referred to Deputy Director (Town Planning) YS Reddy, “S. No.” / “Sno.” denoted file-wise bribes linked to Pawar, and “Commercial” indicated payments for high-value projects awaiting approval. “These code words were not random abbreviations but part of a digital accounting system for corruption… Every construction file carried an internal reference representing the commission to be paid,” the complaint states.
‘Rate card’ for approvals
As per the prosecution complaint, builders and developers were allegedly charged fixed commissions to obtain mandatory permissions such as commencement certificates (CC), occupancy certificates (OC), and regional development plan approvals. According to the ED, for urban zone projects, Pawar and Reddy were paid Rs 20-25 per sq ft and Rs 10 per sq ft, respectively, while they were paid Rs 62.5 per sq ft and Rs 10 per sq ft for green zone projects.
An alleged illegal construction in Vasai-Virar. File Pic
A junior engineer in the town planning department allegedly maintained an Excel sheet to compute built-up areas and track bribes collected or pending. “The file contained clear entries of amounts collected and directly correlated with project approvals,” the ED’s complaint notes.
Statements recorded under Section 50 of the Prevention of Money Laundering Act (PMLA) revealed that during Pawar’s tenure as commissioner (between 2022 and July 2025), he and Reddy allegedly issued commencement certificates for 4.55 crore sq ft of built-up area in urban zones and 61.77 lakh sq ft in green zones. The bribes, according to the agency, were delivered to their residences and relatives through middlemen.
Raids and recoveries
Between May 14 and July 29, 2025, multiple search operations under the PMLA led to massive recoveries — Rs 8.23 crore in cash and jewellery worth Rs 23.25 crore from Reddy’s residence, Rs 1.33 crore in cash from properties linked to Pawar, and Rs 45 lakh in cash from developer Sitaram Gupta’s properties. Bank deposits, mutual funds, and shares worth Rs 13.86 crore were frozen from architects, liaison agents, and chartered accountants. The prosecution complaint attributes the total proceeds of crime and assets as follows: Pawar: Rs 169 crore (Rs 44 crore attached); Reddy: Rs 51 crore (assets under verification); Sitaram and Arun Gupta: Rs 71 crore (Rs 22.8 crore attached).
Lavish lifestyle
The complaint alleges that the accused allegedly used illicit funds for luxury purchases and investments. Reddy reportedly bought BMW and Mercedes-Benz cars, Rolex and Rado watches, and iPhones, and spent heavily on hotel stays and foreign trips. Pawar allegedly purchased expensive jewellery, pearls, and sarees in cash, and later invested in farmhouses in Trimbak and Alibaug worth R3 crore, warehouses in Bhiwandi worth Rs 6 crore, and residential projects in Nashik under his family’s names.
Alleged protection racket
The complaint also states that both officers played key roles in protecting 41 illegal residential and commercial buildings constructed on government and reserved land. Despite being aware of the violations, they allegedly ensured no action was taken in exchange for bribes. “A fixed commission rate of Rs 150 per sq ft was imposed on these illegal projects, out of which Rs 50 per sq ft went directly to Pawar,” the prosecution complaint states. It adds that Pawar instructed demolition teams to retreat from sites where builders had already paid him. Statements from assistant municipal commissioners confirm that Pawar had issued an internal circular mandating his prior approval before any demolition drive.
Arrest declared illegal
The Bombay High Court on Wednesday strongly criticised the ED for arresting the Pawar, calling the action arbitrary, illegal, and unsupported by evidence. The bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad said Pawar’s arrest was contrary to Section 19 of the PMLA as well as an infringement of his fundamental rights under Articles 14, 19 and 21 of the Constitution. As of August 13, the day Pawar was arrested, the arresting officer did not possess sufficient material to justify forming a “reason to believe” that the officer had committed an offence under the PMLA, the court said. The ED later chose to challenge the high court’s order through a special leave petition in the Supreme Court.
Lawyer speaks
Advocate Ujjwalkumar Chavan, who is representing Pawar, alleged that the entire operation was executed with a pre-set target in mind rather than a genuine investigtion. “To register a case under the PMLA and to establish proceeds of crime, four FIRs registered in 2019, 2022, and 2023 were used. There was no real intention of inquiry into the actual sale of the 41 illegal buildings. During Pawar’s tenure, 246 unauthorised constructions were demolished, which were not inquired into. It is also claimed that he got Rs 169 crore as proceeds of crime. This is completely based on estimates and not on actual transactions. The issue of corruption is beyond the ambit of four FIRs; therefore, ED has no jurisdiction of inquiry,” Chavan told mid-day.
