ED gets extended custody of former Vasai-Virar planning official in illegal buildings scam

A PMLA court extended the custody of Y Shiva Reddy, linked to a money-laundering case involving unauthorized buildings, until September 8.

MUMBAI: A special Prevention of Money Laundering Act (PMLA) court on Thursday extended the custody of Y Shiva Reddy, former deputy director of town planning at the Vasai Virar City Municipal Corporation (VVCMC), after the Enforcement Directorate (ED) sought to question him over fresh evidence recovered from his mobile phone. He will remain in ED custody till September 8.

ED gets extended custody of former Vasai-Virar planning official in illegal buildings scam

The money-laundering case stems from multiple FIRs filed by the Mira Bhayander–Vasai Virar police over the construction of 41 unauthorised buildings in Agarwal Nagar, Nalasopara East. The structures—now demolished—had come up on encroached land earmarked for a dumping ground and a sewage treatment plant.

Reddy was arrested on August 13 alongside former VVCMC commissioner Anil Pawar and two others. The four were initially remanded to ED custody, and later sent to judicial custody on August 20.

On September 3, the agency moved court again, citing mobile phone data and WhatsApp chats allegedly showing that Reddy had diverted proceeds of crime to relatives and associates. The ED also claimed that he needed to be confronted with several high-value transactions unearthed during the probe.

The agency told the court that witness statements pointed to a large-scale bribery system within the civic body. Builders were allegedly charged ₹30 per square foot to secure planning permissions, with some well-connected developers enjoying direct access to the commissioner’s residence. Smaller builders reportedly routed bribes through his staff.

Investigators further said that Reddy and Pawar had cleared permissions for 586 projects across two wards in return for kickbacks. The agency is also examining the role of additional individuals whose involvement has surfaced during the probe.

Granting ED’s plea, special judge RB Rote observed, “Considering the statements of witnesses and the list of commencement certificates, without the custody of accused No. 3 (Reddy), the investigation cannot be completed in an effective and proper manner.”

Calling it a “serious economic offence affecting the socio-economic condition of society” with “transnational impact on financial systems including sovereignty and integrity of the country,” the court extended Reddy’s custody until September 8.