41 illegal bldgs in Vasai: ED records statement of fmr corporator

According to the ED, Sitaram Gupta is one of the perpetrators of large-scale illegal constructions in Vasai-Virar since 2009

Mumbai: The Enforcement Directorate (ED) on Tuesday questioned former Vasai Virar City Municipal Corporation (VVCMC) corporator Sitaram Gupta regarding his alleged role in the construction of 41 illegal buildings on a 60-acre plot earmarked for public projects in Vasai East.

All 41 buildings were demolished earlier this year following directions from the Bombay high court, leaving around 2,500 residents homeless

Gupta’s statement was recorded under provisions of the Prevention of Money Laundering Act (PMLA) and the process will continue on Wednesday, said sources in the ED’s Mumbai unit, which is conducting a money laundering probe in connection with the 41 illegal buildings.

According to the ED, Gupta is one of the perpetrators of large-scale illegal constructions in Vasai-Virar since 2009. The agency had conducted searches at 13 locations in Vasai-Virar and Hyderabad last week, which had led to the seizure of cash and valuables worth ₹32.29 crore, including ₹44 lakh from Gupta’s Nalasopara residence.

On Tuesday, Gupta was asked about the source of cash seized from his home, said ED sources. The agency has also summoned another case suspect, VVCMC deputy director (town planning) YS Reddy, for questioning, the sources added.

Most of the cash and valuables seized by the ED last week were found at Reddy’s Hyderabad home. He was present when the search was conducted but was later admitted to a hospital, where he continues to remain under treatment. On Monday, he was suspended from service and asked to face a departmental inquiry as his alleged actions were in violation of the Maharashtra Civil Services (conduct) rules.

The ED’s probe was initiated by registering an ECIR (Enforcement Case Information Report), which was based on multiple first information reports registered by the Mira-Bhayandar police Commissionerate in connection with the construction of the 41 illegal buildings.

During the probe, the ED learnt that the 41 illegal buildings were constructed on a plot reserved for a sewage treatment plant and dumping ground via collusion between various builders and VVCMC officials. All 41 buildings were demolished earlier this year following directions from the Bombay high court, leaving around 2,500 residents homeless. The action was taken following a Supreme Court directive which denied any relief to the residents.