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The Enforcement Directorate (ED) has conducted a second round of raids targeting a syndicate involved in unauthorized constructions in the Vasai-Virar region of Maharashtra. The money laundering probe stems from multiple FIRs alleging illegal building and fraud against buyers. The investigation uncovered 41 illegal buildings on reserved land, which were later demolished, leaving families homeless. During earlier raids, INR 8.6 crore in cash and INR 23.25 crore in valuables were seized from a town planning official's residence. The ED's action signals a crackdown on real estate fraud and corruption.
The Enforcement Directorate (ED) has recently carried out a second series of raids targeting a group involved in illegal construction. This action, taken in the Vasai-Virar Municipal Corporation (VVMC) region of Maharashtra, is part of an ongoing money laundering probe related to unauthorized buildings and alleged fraud. The ED focused on individuals coordinating illegal activities by searching premises. Advertisement
The investigation is based on multiple First Information Reports (FIRs) filed by the Mira Bhayandar Vasai Virar police commissionerate. These FIRs allege illegal construction of residential-cum-commercial buildings on government and private land since 2009. Such Investigations into unauthorized construction and related money laundering schemes aims to curb corruption, protect homebuyers from fraud, and ensure adherence to urban planning regulations.
During initial raids in May, the ED seized approximately INR 8.6 crore in cash, INR 23.25 crore worth of diamond-studded jewelry and bullion from the house of Y S Reddy (Deputy Director of Town Planning for VVMC). Reddy was previously arrested in 2016 by the Anti Corruption Bureau for allegedly offering a bribe to a Shiv Sena corporator.
The second round of searches primarily focused on liaison officers, architects, and middlemen who are suspected of coordinating between builders and VVMC officials. The investigation reportedly uncovered a large-scale scheme where 41 illegal buildings were constructed on land specifically reserved for a sewage treatment plant and a dumping ground.
The builders and developers involved allegedly deceived the public by selling rooms in these unauthorized buildings, fabricating approval documents, and committing fraud, even with prior knowledge that the buildings would eventually be demolished. These 41 buildings were indeed demolished on February 20, 2025, following orders from the Bombay High Court, which were upheld by the Supreme Court. This action left families who had purchased rooms in these illegal structures homeless. Key individuals identified in the alleged scheme include Sitaram Gupta and Arun Gupta.
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