Mumbai, May 15 In a massive action against builders and their local henchmen, the ED on Thursday searched 13 different premises across Mumbai and Hyderabad, seizing cash and jewels worth nearly Rs 32 crore in a case related to illegal construction of homes and offices on government land in Vasai-Virar City.
The accused duped home and office buyers by fabricating documents and carrying out construction on government and private land and selling these illegal properties to them, said an ED official, adding that 41 such illegal buildings were pulled down by civic agencies in February.
The case pertains to “illegal construction of residential cum commercial buildings on government and private land” under jurisdiction of “Vasai Virar Municipal Corporation (VVMC)” since 2009, said an ED official.
It has been found that the key perpetrators of the large-scale scam in the jurisdiction of Vasai Virar Municipal Corporation are Sitaram Gupta, Arun Gupta and others, including the civic agency’s Deputy Director of Town Planning, Y.S. Reddy.
During searches at Reddy’s premises, Rs 8.6 crore and diamond-studded Jewellery and bullion worth Rs 23.25 crore were seized, said an official.
Over a period of time, 41 illegal buildings were constructed on the land reserved for “Sewage Treatment Plant” and “Dumping Ground” as per the approved development plan of Vasai Virar City, he said.
The Directorate of Enforcement (ED), Mumbai Zonal Office, carried out the multi-city searches under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, over two days, starting Wednesday.
Giving details of the seizure, the ED said investigators confiscated Rs 9.04 crore cash and Rs 23.25 crore worth of diamond-studded jewellery and bullion and a large number of incriminating documents.
The ED initiated an investigation based on multiple FIRs registered by the Mira Bhayandar Police Commissionerate against builders, local henchmen and others.
The accused builders and developers deceived he general public at large by constructing illegal buildings on government and private land and subsequently selling them to the general public by fabricating approval documents.
“Even with prior knowledge that these buildings were unauthorised and would eventually be demolished, the developers misled the people by selling rooms in these buildings, thereby committing serious fraud,” said the ED in a statement.
The federal agency said the Bombay High Court had on July 8, 2024, ordered the demolition of all 41 buildings. Thereafter, an SLP was filed before the Supreme Court by the families residing in 41 illegal buildings, which was dismissed. The demolition of all 41 buildings was completed by VVMC on February 20, 2025.
Maharashtra’s fifth largest city, Vasai-Virar, is an agglomeration of four previously governed municipal councils: Vasai (Bassein), Virar, Nallasopara and Navghar-Manikpur, as well as a few towns to the east and west of the urban area. It lies in the Konkan division.
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