ED Provisionslly Attaches Properties Worth ₹71 Crore in Vasai-Virar Illegal Construction Case.

Headnote:

The Directorate of Enforcement (ED), Mumbai Zonal Office, has provisionally attached immovable properties worth ₹71 crore belonging to Anil Pawar, Sitaram Gupta, and others under the Prevention of Money Laundering Act (PMLA), 2002. The attachment follows an investigation into an organized cartel enabling illegal construction of 41 buildings on government and private land in Vasai-Virar City Municipal Corporation (VVCMC) jurisdiction. The investigation revealed large-scale bribery and laundering of proceeds of crime (POC) by Pawar and his associates, highlighting ED’s efforts to combat financial crimes and restore public assets.

Background:

1. Since 2009, multiple FIRs were registered by the Mira Bhayandar Police Commissionerate against builders and officials for illegal construction in VVCMC jurisdiction.
2. 41 illegal buildings were constructed on land reserved for Sewage Treatment Plant and Dumping Ground.
3. The Hon’ble Bombay High Court ordered demolition of all 41 buildings on 08.07.2024, which was completed on 20.02.2025.
4. Families of residents in these buildings filed an SLP before the Supreme Court, which was dismissed, clearing the way for ED investigation.

Investigation Findings:

1. ED investigation revealed an organized cartel of VVCMC officials including Commissioners, Deputy Directors, Town Planners, Junior Engineers, Architects, CAs, and liasoners.
2. Anil Pawar, ex-Commissioner of VVCMC, organized the cartel to extract bribes and provide protection to illegal constructions.
3. Commission rates imposed on illegal constructions:
4. Rs. 150 per sq. ft., with Rs. 50 per sq. ft. going to Pawar.
5. Bribes for development approvals: Rs. 20–25 per sq. ft. in Urban Zone and Rs. 62 per sq. ft. in Green Zone.
6. ED estimated the Proceeds of Crime (POC) earned by Pawar at ₹169 crore, laundered through family members, benamidars, and investments in gold, jewelry, farmhouses, residential projects, and warehouses.

Action Taken:

1. Anil Pawar, IAS, and 3 others were arrested on 13.07.2025 and are in judicial custody.
2. ED has provisionally attached immovable properties worth ₹44 crore belonging to Pawar’s family members/benamidars.
3. Earlier search operations resulted in seizure of:
4. Cash: approx. ₹8.94 crore
5. Diamond-studded jewelry and bullion: ₹23.25 crore
6. Bank balances, shares, mutual funds, and FDs: ₹13.86 crore
7. Prosecution Complaint filed on 10.10.2025; cognizance pending before Special PMLA Court.

Case Title: Directorate of Enforcement (ED) vs. Anil Pawar, Sitaram Gupta & Others

Jurisdiction / Court: Special PMLA Court, Mumbai (Cognizance yet to be taken)

Case Number: Provisional attachment proceedings under PMLA, 2002 (PAO issued; prosecution complaint filed 10.10.2025)

Date of FIR / Investigation Initiation: Multiple FIRs registered by Mira Bhayandar Police Commissionerate since 2009

Statute / Act Invoked: Prevention of Money Laundering Act, 2002 (PMLA)

Outcome:

1. ED’s actions ensure freezing of POC and recovery of assets involved in illegal activities.
2. Demonstrates ED’s commitment to prevent financial crimes, combat corruption, and restore public confidence.
3. Investigation is ongoing to identify additional individuals and assets involved in the illegal construction and laundering operations.