The Enforcement Directorate (ED) has recovered cash worth Rs 9.04 crore and diamond jewellery, bullion and documents valued at Rs 23.25 crore in the search operation conducted in the Vasai-Virar Municipal Corporation (VVMC) scam case, officials said on Thursday. The seizure was made in the raids conducted at 13 different locations belonging to various accused across Mumbai and Hyderabad on May 14 and 15.

The raids carried as per the provisions of the Prevention of Money Laundering Act, 2002, were part of an investigation which was launched by the financial probe agency based on multiple FIRs registered by the Mira Bhayandar Police Commissionerate.

The case pertains to the illegal construction of 41 residential-cum-commercial buildings on the land reserved for Sewage Treatment Plant and Dumping Ground as per the approved development plan of Vasai-Virar City, falling under the jurisdiction of the VVMC.

During the investigation, the ED found that the accused allegedly acquired 30 acres of land from private owners and an additional 30 acres reserved for government projects, including a dumping ground and a Sewage Treatment Plant (STP) through forged documents.

To bolster their claim, the accused created an elaborate trail of handing over these land parcels in the names of dead persons. Ultimately, they sold the land to various builders using fake ownership documents.

The accused builders and developers, in close connivance with VVMC officials, started constructing illegal residential-cum-commercial buildings from the year 2009 onwards without obtaining Construction Permits (CC) or Occupancy Certificates (OC), ED officials said.

They then deceived and cheated the public at large by constructing illegal buildings and subsequently selling it to them by fabricating approval documents.

The Bombay High Court, in its July 2024 ruling, ordered the demolition of all 41 buildings. Thereafter, a Special Leave Petition was filed before the Supreme Court by the families residing in 41 illegal buildings, which was dismissed. The demolition of all 41 buildings was completed by VVMC on February 20, 2025.

WHAT ED INVESTIGATIONS REVEALED

ED investigations further revealed that large-scale illegal construction in the area has been going on since 2009. The same land parcel of 60 acres has been subjected to earlier illegal encroachment and construction also.

From 2009-2011, the same accused and builders constructed 168 buildings and 74 rooms in chawl on these 60 acres of land parcel and sold the residential and commercial units to the public at large.

Due to the timely intervention of the Bombay High Court, all were demolished back in 2013 also. It was also found that the perpetrators of the large-scale scam were identified as Sitaram Gupta, Arun Gupta and others.

During the course of the search operation at the premises of YS Reddy, Deputy Director Town Planning, VVMC, cash amounting to Rs 8.6 crore and diamond jewellery and bullion worth Rs 23.25 crore were seized.

Tune In