Mumbai: Former Vasai-Virar City Municipal Corporation (VVCMC) commissioner Anil Pawar, arrested by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA), has chosen not to seek bail following his remand to judicial custody. Instead, his legal team plans to file a petition challenging the legality of his arrest, his counsel Ujjwal Kumar Chavan said on Thursday.
Arrest ‘Unsustainable in Law’
Calling the arrest “unsustainable in law,” Chavan alleged that the ED’s case contained “multiple factual inaccuracies.” He pointed out that the agency’s investigation pertains to 41 unauthorised constructions undertaken between 2008 and 2021, while Pawar assumed charge as VVCMC Commissioner only in January 2022. “The question of his having received any bribe in connection with those buildings does not arise,” he argued.
ED’s Remand Report Contested
Referring to the ED’s remand report, Chavan said the agency had claimed that Pawar was operating a nexus in which a commission of Rs 20–25 per sq. ft. was allegedly collected as illegal gratification. However, he maintained that this claim was “entirely separate” from the 41 buildings cited in the FIR, which form the basis of the scheduled offences. “Since those constructions were completed before Pawar’s appointment, the very foundation of the predicate offence of this so-called bribery allegation is missing. The arrest is arbitrary and illegal,” he submitted.
Pawar’s legal team has further alleged that the ED’s case is based on statements obtained under coercion, with several individuals allegedly threatened with arrest unless they depose against Pawar.
On the financial trail, the ED has said that it seized Rs 1.33 crore during searches, asserting that the cash recovered from the Nashik residence of builder Janardan Pawar was linked to the former civic chief. Chavan countered this, stating that the money belonged to Janardan, who is Pawar’s nephew and an independent builder with regular income tax filings. “There is no nexus between this cash and any proceeds of crime,” he said, adding that Janardan had already explained the source of funds to the agency.
Shell Companies Allegation vs Defence
According to the ED investigation, former VVCMC commissioner Anil Pawar, IAS, allegedly created several entities in the names of family members, relatives and benamidars to launder bribe money collected during his tenure. The agency claims that the formation of these shell entities coincided with his posting as VVCMC commissioner and that the companies were primarily engaged in the construction and redevelopment of residential towers, as well as warehouse projects. The probe further revealed that Pawar’s wife, Bharti Pawar, held directorships in several firms, which the ED described as “dummy directorships” created to camouflage the flow of illicit money.
Countering the ED’s allegations, Pawar’s counsel, Chavan, contended that Bharti Pawar was not a dummy director in any entity. Instead, he argued, she was a capital investor in more than three companies belonging to relatives, which were genuine businesses, regularly audited, tax-compliant, and possessing independent income-generating operations. Chavan pointed out that Bharti Pawar has been associated as director in M/s Janardan Agri, M/s BSR Realty, M/s J.A. Pawar Builders, and M/s Shrutika Enterprises (a firm owned by their daughter). He added that these firms were established between 1997 and 2019, much before Anil Pawar’s appointment as VVCMC Commissioner in 2022. “Therefore, it is incorrect to suggest that these companies were incorporated to launder bribe money collected during Pawar’s tenure,” Chavan maintained, asserting that she functioned solely as a capital investor and was not involved in the day-to-day operations of the firms.
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Jewellery & Luxury Purchases Cited
According to Chavan, the ED has alleged that Pawar received cash from Y.S. Reddy, then Deputy Director of Town Planning, and used it to purchase luxury sarees, pearls, gold, and diamond-studded jewellery, with settlements reportedly made in cash. However, he pointed out that the agency has failed to establish any money trail linking these assets to Pawar. The cash worth Rs 8.94 crore, diamond jewellery valued at Rs 23.25 crore, and frozen bank balances, shares, and mutual funds worth Rs 13.86 crore, he said, are connected to Y.S. Reddy and not Pawar. Chavan further noted that no cash, jewellery, or bullion has been seized from Pawar’s residential premises, and the ED has no concrete evidence against him for which he could be held accountable.
Judicial Custody Continues
Pawar remains in judicial custody in Arthur Road jail while his legal team prepares to challenge the arrest in court.
