The Bombay High Court on Wednesday held as “illegal” the arrest of Anil Pawar, former chief of the Vasai-Virar civic body in Maharashtra`s Palghar, by the Enforcement Directorate (ED) in a money laundering case, and ordered his release, reported news agency PTI.
A bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad said the ED did not have “tangible material” at the time of his arrest.
“We have formed an opinion that as on August 13, 2025, the arresting officer has no such material as required under section 19 of the Prevention of Money Laundering Act (reason to believe that person is guilty of offence),” the HC said, reported PTI.
“We mean that there is no tangible material and the whole case of ED is based on statement of certain architects and developers,” the bench said, reported PTI.
Pawar was arrested by the ED on August 13. He had moved the HC challenging his arrest in the case and subsequent orders passed by a special court remanding him to judicial custody.
The high court on Wednesday quashed the special court`s orders too.
“The petition succeeds to the extent that the arrest of petitioner on August 13 is illegal. The orders passed by the special judge remanding him are quashed. The petitioner shall be released,” HC said, reported PTI.
After the order was pronounced, Additional Solicitor General Anil Singh, appearing for the ED, sought a stay which was declined by the high court, reported PTI.
Pawar is accused of conniving with builders and developers by which 41 illegal buildings were constructed in Vasai and Virar, reported PTI.
A corruption case was lodged against Pawar and others, pursuant to which the ED began its money laundering probe.
In May, the Directorate of Enforcement (ED), Mumbai Zonal Office, had conducted search operations at 13 different locations across Mumbai and Hyderabad under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The Search operation led to seizure of Rs. 9.04 Crore (approx.) cash and Rs. 23.25 Crore worth of diamond-studded jewellery and bullion and a large number of incriminating documents.
ED initiated an investigation on the basis of multiple FIRs registered by the Mira Bhayandar Police Commissionerate against builders, local henchmen and others. The case pertains to “illegal construction of residential cum commercial buildings on government and private land” under the jurisdiction of “VVCMC” since 2009.
Over a while, 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 accused builders and developers have deceived and the general public at large by constructing illegal buildings on such land and subsequently selling it to them (general public) by fabricating approval documents. Even with prior knowledge that these buildings were unauthorised and would eventually be demolished, the developers misled the people by selling rooms in these buildings, thereby committing serious fraud.
(With inouts from PTI)
