Palghar, Maharashtra: The Enforcement Directorate (ED) on Tuesday conducted raids on the residences of architects, builders, and chartered accountants in the Vasai-Virar construction scam, unearthing crores of rupees and seizing highly crucial and confidential documents.
During the operation, bank funds totaling ₹12 crore and fixed deposits were frozen, and ₹26 lakh in cash was confiscated. The ED has found evidence of a deep-rooted nexus between municipal officers, construction developers, and architects in this extensive building fraud.
The ED initiated action in connection with 41 unauthorized buildings in Nalasopara. In an earlier raid in May, approximately ₹9 crore in cash and ₹23 crore in gold were seized from the residence of suspended Deputy Director of Town Planning, Y.S. Reddy.
Following this, a money laundering case was registered, and investigations commenced. Information gathered during Reddy's interrogation revealed the names of prominent builders, architects, and chartered accountants in the city, leading to Tuesday's coordinated raids across 16 locations. To date, bank balances, fixed deposits, and mutual funds worth ₹12.71 crore have been frozen, and ₹26 lakh in cash has been seized.
Crucial Evidence Found in Laptops, iPads
During the raids, ED officials confiscated numerous laptops, iPads, and mobile phones. These devices contained highly significant evidence, including confidential documents, property deeds, receipts, agreements, and audio recordings.
ED officials stated that based on this evidence, many individuals are expected to come under scrutiny. The ED has indicated that these findings reveal widespread financial transactions for obtaining construction permits for buildings in the city. The agency has observed that black money from the construction scam was being channeled into the municipality.
Municipal Officials, Builders, Architects in Collusion
The ED has stated that land mafias, in collusion with municipal officials, constructed 41 illegal buildings. The investigation into this case has uncovered a large-scale racket involving municipal officers, construction developers, chartered accountants, and architects. This network was involved in the illicit circulation of black money worth crores.
ED's Focus Drawn by Removal of Land Reservation
The land mafias had constructed 41 unauthorized buildings on plots in Nalasopara that were originally reserved for a garbage dump (dumping ground) and a sewage treatment plant (STP).
They fraudulently obtained fake commencement certificates (CCs) and occupancy certificates (OCs) and sold homes to approximately 2,500 unsuspecting families.
The municipality had informed the court that the land was required for sewage and waste disposal projects. Consequently, following a Supreme Court order, these 41 buildings were demolished in January 2015.
While these projects were expected to commence, a proposal to remove both reservations was made immediately in February of the same year. This proposal bore the signature of the then-Deputy Director of Town Planning, Y.S. Reddy.
Former corporator Dhananjay Gawade had alleged that these reservations were removed to benefit the land mafias, which drew the ED's attention to the case. After several criminal cases were filed, the ED registered a money laundering case and initiated its investigation.
