The Enforcement Directorate (ED) has revealed in its remand petition that former Vasai Virar City Municipal Corporation (VVCMC) Commissioner Anil Kumar Khanderao Pawar was at the top of a cartel, which included the municipal officers, builders and middlemen. The ED claims that this cartel converted the entire corporation into an organized corruption base.

According to the ED, Pawar institutionalized the “Fix -Operate bribery system”, in which he himself kept the largest part, while his colleague and planning officer – in which the Deputy Director of Town Planning, Y. S. Reddy also included, ensuring that illegal buildings on 60 acres of government and private land stand without stopping.

The ED says that the racket started with a large scale land by former corporator Sitaram Sudhama Gupta and his nephew Arun Sadanand Gupta and gradually it turned into a parallel economy through benami transactions, shell companies and cash recovery. The ED in its remand report has narrated the role of each accused very closely.

Accused number-1 Sitaram Sudhama Gupta

Bahujan Vikas Aghadi (BVA) party’s former corporator Sitaram Gupta is accused of large -scale land possession, illegal construction and money laundering.
• In 2007, Gupta formed a chawl without government permission and sold it to the public, after complaints CIDCO demolished them in 2007–08.
• Between 2009–2011, when VVCMC replaced CIDCO, Gupta erected 168 G+4 buildings and 74 chawls on about 60 acres of land (including government plots), which was later demolished by the High Court order.
• Investigation revealed that Gupta and his associates used fake agreement and power of attorney and sold 60 acres of land to local builders.
• Between 2013–2021, these builders built 41 buildings with the connivance of VVCMC officials.
• Gupta received a hefty cash from these deals, which was rotated through dummy builders, shell companies and benami owners (often in the name of driver, rickshaw driver or employee).
• In the raid of May 2025, 45 lakh cash was recovered from his house. He also admitted that he bribed the municipal officials to get approval for illegal construction and avoid action.

According to the ED, Gupta’s activities prove him to be the main architect and beneficiary of this crime, which falls under the category of crime under sections 3 and 4 of PMLA 2002.

Accused number-2 Arun Sadanand Gupta

Arun Gupta, nephew of Sitaram Gupta, is considered influential in the Vasai-Virar region. He played an important role in association with Sitaram and independently in illegal deal and money laundering.

• In 2006, Arun, along with Sitaram, Arun, Survey No. of Achole, Nalasopara (East). Received about 30 acres of land of 22–32, which was reserved by CIDCO for sewage treatment plant and dumping ground.
• Despite knowing the banned land, both of them divided it into about 100 sub-plots and sold it without approval.
• Buyers, many of whom paid cash, were adected that it is a valid residential plot.
• Two illegal buildings were also erected, which were later ordered by the Bombay High Court.
• Cash income from these deals was given to the alleged seller in installments and the remaining amount was invested in expensive assets in Vasai, Naigaon, Palghar and Nalasopara.
• During the investigation, Arun Gupta could not show reliable records of ownership and payment documents and found heavy discrepancies in sales deeds seized from him.

Accused No. 3 Y. S. Reddy

Y. S. Reddy started a career as Assistant Town Planner in CIDCO in 1993. In 2010, he was sent to VVCMC and in 2012 he became Deputy Director of Town Planning.
• While in this post, he gave institutional form to corruption.
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• WhatsApp chats and statements of builders show that code names were used: “D” (Reddy), “C” (Commissioner Pawar)
• An architect admitted that he gave Rs 50 lakh to Reddy for a 1.95 lakh square foot project.
• In the May – June 2025 raid, ED seized 8.23 crore cash and diamonds worth 23.25 crore from his house.
• This money was later invested in real estate, jewelery and other properties to hide its illegal origin.

According to the ED, Reddy took personal advantage by misusing his position and allowed illegal construction to flourish in Vasai-Virar

Accused number-4 Anil Kumar Khanderao Pawar

IAS officer of 2014 batch, was the Commissioner of VVCMC from 13 January 2022 to 25 July 2025.
• ED investigation revealed that Pawar further strengthened the already present Cartel instead of fulfilling his responsibility and made VVCMC completely “the center of corruption”.
• They erected organized bribe and recovery mechanisms, which had a fixed rate of Rs 150 per sq ft.
• 50 rupees for Pawar himself
• 30 rupees for additional commissioner
• 20 rupees for Deputy Commissioner
• The remaining Assistant Commissioner, Engineer and Planning Staff were divided.
• Builders and architects made a statement that “C” for Pawar and “D” code for Reddy were used.
• Pawar’s share for a project (1.95 lakh square feet) was fixed at Rs 48.75 lakh.
• Pawar not only stopped action on 41 illegal buildings, but in return, recovery of crores of bribery in return
• Investigation revealed that Pawar invested illegal earnings in real estate and luxury items through relatives, shell companies and benami institutions
• One of his relatives admitted that Reddy’s Rs 3.375 crore cash (Rs 37.5 lakh + 3 crore rupees) was taken from Angadia courier in Dadar, which was later invested in the property.
• Expensive saris, pearls, gold and diamonds were also purchased, which were paid in cash

ED says that Pawar misused his post and made the corporation a base of organized corruption and became the chief beneficiary of illegal transactions worth crores of rupees.

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