ED seizes ₹44 lakh cash concealed in secret wall cupboard

The cash was seized from the house of a former corporator, an alleged perpetrator of the illegal constructions, according to the ED

MUMBAI: The Enforcement Directorate (ED), during a search, seized ₹44 lakh in cash from a metal cupboard lying concealed behind a wooden door in a Nalasopara (East) residence. The searches, conducted on Wednesday and Thursday, were at 13 locations in Vasai, Virar and Hyderabad in Telangana, and were related to the ED’s money-laundering probe into the construction of 41 illegal buildings in Vasai East on a 60-acre plot earmarked for public projects.

The cash was hidden in a metal cupboard that was concealed behind a wooden door

The cash was seized from the house of a former corporator, an alleged perpetrator of the illegal constructions, according to the ED. The ED team, on suspicion, decided to check the wooden door at his house, and upon its removal, found the standard-size metal cupboard concealed behind it. As the house owner allegedly did not part with the cupboard key, the ED team had to obtain the services of a key-maker who opened it, said sources.

During its various searches, the ED seized ₹32.29 crore, ₹23.25 crore of this in diamond-studded jewellery and bullion, and ₹9.04 crore in cash. Most of the cash and all the valuables were seized from the Hyderabad residence of Y S Reddy, deputy director (town planning), Vasai Virar City Municipal Corporation (VVCMC). Reddy was at home at the time and was later rushed to a local hospital on complaints of heart-related problems, sources added.

Apart from Reddy’s Hyderabad home, searches were conducted at the premises of other alleged key perpetrators of illegal constructions in Vasai-Virar, including the former corporator. “We suspect that several former VVCMC senior officials connived with a group of builders to facilitate the construction,” a source familiar with the probe told Hindustan Times. “We will summon those officials and other case accused for questioning soon.” The searches led to the seizure of documents, which revealed how VVCMC officials had connived with builders.

The ED probe was initiated by registering an ECIR (Enforcement Case Information Report), which was based on multiple FIRs 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 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.

On the directions of the Bombay high court, all 41 buildings were demolished by the VVMC earlier this year, leaving around 2,500 residents homeless. The action was taken following a Supreme Court directive which denied any relief to the residents.