Palghar, Maharashtra: The Directorate of Enforcement (ED), Mumbai Zonal Office, has intensified its probe into the multi-crore Vasai-Virar City Municipal Corporation (VVCMC) construction scam, conducting a major search operation across 12 locations in Mumbai, Pune, Nashik, and Satara on July 29, 2025.
The raids were carried out under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the case involving Jayesh Mehta and others, including senior VVCMC officials. The searches led to the seizure of ₹1.33 crore in cash and a large cache of incriminating documents and digital evidence, including property papers, bank deposit slips, and records linking assets to relatives and benamidars of Anil Pawar.
Scam Involved 41 Illegal Buildings on Reserved Land
The ED launched its investigation based on multiple FIRs registered by the Mira-Bhayandar Police against a network of builders, local henchmen, and corrupt civic officials.
The scam revolves around the illegal construction of residential-cum-commercial buildings on both government and private land reserved for sewage treatment plants and dumping grounds, as designated in the approved Vasai-Virar development plan. A total of 41 buildings were unlawfully built and sold to unsuspecting buyers using forged approval documents.
Shockingly, the builders continued selling flats even after knowing that the structures were unauthorised and destined for demolition, thereby defrauding hundreds of homebuyers.
High Court and Supreme Court Intervene
Following a public interest litigation, the Bombay High Court ordered the demolition of all 41 illegal structures on July 8, 2024. A subsequent Special Leave Petition (SLP) filed before the Supreme Court by affected families was dismissed, and the VVCMC carried out the demolition on February 20, 2025.
Anil Pawar’s Alleged Role as Kingpin
ED’s investigation has unearthed a well-organised cartel of municipal officers and private intermediaries, including Commissioner, Deputy Director Town Planner (DDTP), Junior Engineers, Architects, Chartered Accountants, etc.
The cartel, according to ED, operated in collusion to approve illegal constructions in exchange for bribes. After Anil Pawar’s appointment as Commissioner, a “commission rate” of ₹20–25 per sq ft was allegedly fixed for him, while ₹10 per sq ft was allotted to Y.S. Reddy, then Deputy Director of Town Planning.
Benami Entities and Shell Companies Uncovered
Evidence collected during the search shows Pawar established multiple shell companies in the names of family members and benamidars, primarily involved in the construction of residential towers and warehouses. These entities were allegedly created to launder illicit funds, coinciding with his tenure at VVCMC.
Seized digital devices further revealed a tight-knit network of civic officials and private players working together to facilitate and profit from illegal constructions across the Vasai-Virar region.
Previous Raids: Diamonds, Gold & Frozen Assets
This is not the first major breakthrough in the case. Earlier ED raids led to the seizure of:
* ₹8.94 crore in cash
* Diamond-studded jewelry and bullion worth ₹23.25 crore
* Frozen assets including bank balances, shares, mutual funds, and fixed deposits totalling ₹13.86 crore
The ED has confirmed that the investigation is still ongoing, with more revelations expected in the coming weeks. The scale and complexity of the scam have shocked citizens and triggered calls for greater transparency, accountability, and reforms in urban governance.
As the probe continues to expose the depth of corruption within civic systems, questions loom over how such widespread illegality went unchecked for over a decade, and how many more such cartels may still be operating in Maharashtra’s fast-growing urban corridors.
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