Vasai-Virar Illegal Construction Scam: ED Reveals ₹35/Sq Ft Bribes For Building Approvals, Ex-Commissioner Under Probe

Palghar, Maharashtra: The Enforcement Directorate (ED) has uncovered a massive construction-related bribery racket in the Vasai-Virar region, revealing that former Municipal Commissioner Anilkumar Pawar and former Town Planning Deputy Director Y.S. Reddy allegedly collected bribes amounting to ₹35 per square foot for approving new buildings.

Commissioner Took ₹25/Sq Ft, Town Planner ₹10: ED

According to ED findings, ₹25 per sq ft was charged by the Commissioner, while ₹10 per sq ft went to the Town Planning Officer, with payments reportedly made in cash and gold through architects acting as intermediaries. The scam, ED officials say, generated crores of rupees in illegal wealth, with Pawar allegedly amassing at least ₹1,000 crore in unaccounted assets.

Bribes Collected in Cash and Gold

On Friday, the ED publicly disclosed this rate card system used for granting construction permissions. The revelations emerged during an ongoing investigation into 41 unauthorized buildings in Nalasopara, which led to a broader probe into municipal corruption across Vasai-Virar.

In May, ED had raided the Hyderabad residence of Reddy, uncovering ₹8 crore in cash and jewellery worth ₹23 crore. A case was subsequently registered under the Prevention of Money Laundering Act (PMLA). Following this, ED launched a crackdown in Vasai-Virar, conducting multiple raids on architects, chartered accountants, and builders linked to the scam.

Commissioner’s Residence Raided

Earlier this week, ED also raided 12 locations, including the official residence of Pawar, who was transferred just a day before the raid. The agency recovered ₹1.33 crore in cash and several incriminating documents. According to ED, Pawar accumulated massive unaccounted properties far exceeding his known sources of income.

Investigations indicate that at least ₹25 lakh was collected per building, assuming an average construction area of one lakh square feet. These bribes were allegedly taken in addition to large sums for granting irregular approvals and permissions beyond legal norms.

Organised Corruption Network

ED officials revealed that the scam involved a well-organised network of municipal officials, including junior engineers, architects, chartered accountants, and middlemen. This syndicate allegedly facilitated the approval of illegal constructions across Vasai-Virar, granting immunity to violators in exchange for bribes.

Former Commissioner Anilkumar Pawar is believed to have been the key mastermind, coordinating with other officials to create a system of routine corruption, deeply embedded in the city’s construction approval process.

With mounting evidence and large recoveries already made, ED is expected to expand its probe. Sources indicate that more arrests and seizures are likely, especially as the scope of the scam may extend to other municipal departments.

This high-profile case has reignited public outrage over rampant corruption in local governance and has led to renewed calls for systemic reforms, stronger oversight, and greater transparency in construction approvals.