Mumbai: In a major crackdown on a sprawling land and construction scam, the Enforcement Directorate (ED) on Wednesday carried out search operations at 13 locations within the Vasai-Virar Municipal Corporation (VVMC) limits. targeting a syndicate allegedly involved in the unauthorized development of 41 mixed-use buildings on nearly 60 acres of civic land reserved for sewage treatment and dumping grounds.
The ED’s probe, part of a larger money laundering investigation, is focused on a well-organised nexus between builders, corrupt VVMC officials, local henchmen, and document forgers who allegedly facilitated the unauthorized construction using forged approvals, sale deeds, and zoning clearances.
Searches were conducted at the residence and offices of a Vasai-based builder Arun Gupta , VVMC officials, and document fabricators. According to ED sources, the forged paperwork allowed 41 residential-cum-commercial buildings located in Agrawal Nagar and Nalasopara (E) to appear legitimate, enabling their sale to unsuspecting homebuyers, many from economically weaker sections.
The buildings, constructed between 2010 and 2012 allegedly in blatant violation of zoning and land use norms, were demolished in December 2024 following orders of the Bombay High Court. The demolition drive, carried out by the Vasai-Virar Municipal Corporation, left over 2,500 families homeless.
The ED registered an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act (PMLA) based on multiple First Information Reports (FIRs) registered by the Mira Bhayandar Vasai Virar police commissionerate in connection with illegal construction of residential cum commercial building in the Vasai Virar area.
Sources said one of the FIRs the central agency relied upon was filed at the Achole Police Station in 2023 alleging that a former VVMC corporator Sitaram Gupta, his brother Arun Gupta and their accomplices allegedly acquired 30 acres of land belonging to private owners and an additional 30 acres of land reserved for a dumping ground and a sewage treatment plant, and sold it to various developers after acquiring allegedly fake ownership documents.
The developers then constructed 41 buildings on the land and sold flats worth lakhs to thousands of families. According to the FIR, there have been transactions worth Rs 500 crore to Rs1,000 crore in total, which prompted the ED to launch an investigation on its own.
Sources in the ED revealed that the scam involved a deep-rooted nexus between corrupt civic officials and a network of builders who manipulated land use classifications, forged construction approvals, and created fake agreements to sell illegally built flats, officials found that municipal documents had been tampered with, zoning permissions were fabricated, and in some cases, entire building proposals were manufactured without any official sanction. The accused allegedly took advantage of bureaucratic loopholes and political patronage to carry out these activities over the past several years.
In March 2025, ED recorded the statement of Ajay Sharma, caretaker of one of the private land parcels, on which some of the illegal buildings were constructed. Sharma had filed an FIR in June 2023, alleging land grabbing, cheating, and forgery involving VVMC officials and other accused.
