41 illegal bldgs in Vasai: ED seizes cash, valuables worth ₹31 cr from town planner’s premises

The searches led to the seizure of documents which revealed how VVCMC officials connived with builders to erect a slew of illegal buildings in Vasai-Virar, said ED sources

MUMBAI: The Enforcement Directorate (ED) on Thursday continued its searches at 13 locations as part of its money laundering probe into the construction of 41 illegal buildings in Vasai East on a 60-acre plot earmarked for public projects. The searches resulted in seizure of cash and valuables worth ₹32.29 crore, including diamond-studded jewellery and bullion worth ₹23.25 crore and ₹9.04 crore in cash.

All 41 buildings were demolished by the Vasai-Virar Municipal Corporation (VVMC) earlier this year following directions from the Bombay high court, leaving around 2,500 residents homeless

Most of the cash and all the valuables were seized from the Hyderabad residence of YS Reddy, deputy director (town planning), Vasai Virar City Municipal Corporation (VVCMC), said sources in the investigating agency. Reddy was at home at the time and was later rushed to a local hospital on complaints of heart-related problems, the sources added.

Apart from Reddy’s Hyderabad home, searches were conducted at the premises of the alleged key perpetrator of illegal constructions in Vasai-Virar, former Vasai corporator Sitaram Gupta Around ₹44 lakh in cash was seized from Gupta’s home in Nalasopara, ED sources said. The ED is scrutinising the role of another alleged perpetrator named Arun Gupta. It is also verifying the role of another person named V Tambat and a few others, the sources added.

“We suspect that several former VVCMC senior officials connived with a group of builders to facilitate the construction of illegal buildings in Vasai-Virar. We will summon those officials for questioning soon,” an officer familiar with the probe told Hindustan Times, requesting anonymity.

HT had on Wednesday reported about the searches across Maharashtra and Telangana. The searches led to the seizure of documents which revealed how VVCMC officials connived with builders to erect a slew of illegal buildings in Vasai-Virar, said ED sources.

The ED’s money laundering 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 learned that large-scale illegal constructions in the concerned area commenced in 2009. The 41 illegal buildings were constructed by a group of builders and their henchmen by forging a range of approval documents, preparing fake agreements and selling residential and commercial units to gullible and poor customers, the ED found.

All 41 buildings were demolished by the Vasai-Virar Municipal Corporation (VVMC) 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. The buildings were constructed without necessary permissions from authorities, on a site earmarked for a public project, the court observed.

In September 2023, the Economic Offences Wing of the Mira-Bhayandar-Vasai-Virar (MBVV) police had arrested Gupta. Earlier, in June 2023, the police had booked Gupta and others for acquiring fake ownership documents for 30 acres that belonged to private owners and another 30 acres reserved for a water purification plant and dumping ground. Gupta and others were also accused of selling the 60-acre plot to various builders using forged documents. The complainant in the case was the caretaker of the privately-owned 30 acres, whose owners stay overseas.