ED arrested Anil Pawar, former VVCMC (Vasai Virar City Municipal Corporation). The ED has also arrested former corporator Sitaram Gupta, his son Arun Gupta and Deputy Town Planeer YS Ready in the case.

Let us tell you that on 29 July 2025, the Enforcement Directorate (ED), Mumbai Zonal Office raided 12 locations in Mumbai, Pune, Nashik and Satana under the Money Laundering Act (PMLA), 2002. This action was taken against Jayesh Mehta and other accused associated with the Vasai-Virar Municipal Corporation (VVCMC) scam. During this period, documents were seized in the name of 1.33 crore cash as well as objectionable documents, property papers, benami properties and relatives of Anil Pawar (the then VVCMC Commissioner).

Building on reserved land

The scam started with several FIRs lodged by Meera-Bhayander Police Commissionerate. The case has been related to illegal residential and commercial buildings on government and private lands in Vasai-Virar Municipal Corporation area since 2009. In the development scheme, 41 illegal buildings were erected on the land which was reserved for sewage treatment plant and dumping ground.

These builders cheated the general public by illegal construction and sold them flats through fake approval documents, knowing that these buildings are illegal and can be broken anytime, misleading people and looted their lives. On 8 July 2024, the Bombay High Court ordered the demolition of all these 41 buildings, which was also maintained by the Supreme Court. On 20 February 2025, all illegal buildings were demolished by VVCMC.

20–25 rupees per sqft bribe rate fixed

ED investigation revealed that the then Commissioner Anil Pawar, Deputy Director (Town Planning) Y.S. Reddy, Junior Engineers, Architects, Chartered Accountants and Lygans, were all part of an organized corruption network. Together these officers had fixed a bribe rate of Rs 20–25 per sqft, out of which Rs 10 per sqft Y.S. Used to go to Reddy.

Investigation also revealed that during his tenure, Anil Pawar had formed several shell companies in the name of family members and benami persons, through which the amount of bribe was legalized. These companies were mainly active in works like redevelopment of residential towers and warehouse construction.

Black money and corruption -based system

Digital equipment also made it clear that VVCMC officials, architects and other middlemen were part of a deep corrupt nexus, running a system based on black money and corruption to get the building construction approval.

In the recovery so far, cash was 8.94 crores, diamond root jewelry and gold-silver 23.25 crores, bank balance, shares, mutual funds, FD freeze 13.86 crore, fresh recovery of 1.33 crore cash + documents and digital evidence. The investigation of the Enforcement Directorate is still going on.

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