Several civic officials, businessmen and politicians are under the scanner for their role in facilitating large-scale landgrab and illegal construction in the Vasai-Virar area, courtesy two ongoing probes into the construction of 41 illegal buildings in Vasai East, on a 60-acre plot reserved for public projects. Report by 19/05/2025 Megha Sood megha.sood@htlive.com
The Economic Offences Wing (EOW) of the Mira-Bhayander-Vasai-Virar (MBVV) police started investigating the matter in 2023, after the Achole police registered a first information report (FIR) as per directions of the Bombay high court.
In September 2023, the EOW arrested former Vasai Virar City Municipal Corporation (VVCMC) corporator Sitaram Gupta. The former civic official and his associates fraudulently acquired the 60-acre plot in Agarwal Nagar in Vasai East and sold the land to various builders, the EOW found during its probe.
According to the Enforcement Directorate (ED), which recently launched a money laundering investigation into construction of the 41 buildings, Gupta is one of the perpetrators of illegal constructions in Vasai-Virar.
Long struggle
The 60-acre plot in Agarwal Nagar includes 30 acres of land reserved for public projects, and another 30 acres owned by persons residing in New Zealand and Canada. When Ajay Sharma, caretaker of the privately-owned portion, visited the plot in 2008, he found construction was underway.
“After I asked for documents and permissions for the construction work, (Sitaram) Gupta and his associates assaulted me near my home with swords,” Sharma, a resident of Vasai West, told Hindustan Times.
In 2018, Sharma filed a public interest litigation regarding illegal construction on the 60-acre plot in the Bombay high court. The VVCMC acknowledged in 2020, in response to a Right to Information application filed by Sharma, that the construction was indeed illegal. In June 2023, the Achole police registered a first information report in the matter, following directions issued by the high court.
The FIR was based on a complaint by Sharma, who alleged that in 2009, Sitaram Gupta and his brother Arun Gupta colluded with the land mafia to make bogus documents pertaining to the plot at the behest of underworld don Chhota Rajan. They then sold the land to various builders, paving the way for construction of the 41 unauthorised buildings, Sharma alleged.
In September 2023, the case was transferred to EOW of MBVV police, which found that Gupta had also issued a bogus completion certificate for one of the buildings on behalf of Cidco (City and Industrial Development Corporation) and VVCMC. The former corporator and his alleged associate Vijay Tambat alias Vijay Salvi were arrested in September 2023.
In October 2024, the VVCMC told the Bombay high court that 30 acres in the 60-acre plot was reserved for a dumping ground and a sewage treatment plant. The court then ordered the civic body to demolish the 41 buildings on the plot.
Over 2,000 families were left homeless due to the demolitions, a majority being factory workers, labourers, small business owners, and migrant workers.
ED launches probe
Meanwhile, Dhananjay Gawde, a former Shiv Sena corporator, brought the matter to the attention of the ED. Gawde had, in the past, exposed several unauthorised constructions in Vasai-Virar by filing Right to Information applications.
He was named as an accused in several cases registered on the basis of complaints by affected developers, officials and politicians and was arrested in 2021.
“I filed complaints with the ED keeping social interests in mind,” said Gawde, who was released in 2023. “Corrupt officials were trying to help builders by displacing common people, which I brought to the notice of the ED.”
As reported by HT on March 18, the VVMC attempted to de-reserve the 60-acre plot and shift the sewage treatment plant to Gass village while demolition of the 41 buildings was underway.
“VVCMC deputy director (town planning) YS Reddy was the main person behind this attempt as he wanted to hand over the plot to developers once it was vacant,” said Gawde.
The plan to shift the sewage treatment plant, however, was thwarted due to intense protests by Gaas residents.
Last week, the ED conducted searches at 13 locations in Vasai-Virar and Hyderabad, connected with builders who constructed the illegal structures. The searches resulted in seizure of cash and valuables worth ₹32.29 crore.
Most of the cash and all the valuables were seized from the Hyderabad residence of Reddy. Another ₹44 lakh in cash was seized from the Nalasopara home of Sitaram Gupta.
31st July 2025 update:
ED finds a warren of properties, shell entities linked to IAS man
Mumbai : The Enforcement Directorate (ED) seized multiple property-related documents linked to IAS officer and former civic chief of Vasai-Virar City Municipal Corporation (VVMC) Anil Pawar, during searches conducted at 12 premises linked to him on Tuesday and Wednesday. ED sources said Pawar had “created a number of entities in the name of his family members, relatives and benamidars to launder the bribe amount collected”.
The source said, “The formation of shell entities coincides with his posting as VVCMC commissioner (2022). These entities are primarily engaged in businesses where large amounts of cash are absorbed, such as construction and redevelopment of residential towers, construction of warehouses and others.”
Investigations by the ED showed an organised cartel of VVCMC officers, including the commissioner, deputy director of town planning, junior engineers, architects, CAs, and liaisoners, all operating in collusion. This cartel is responsible for large-scale illegal construction within VVCMC’s jurisdiction. Commissioner VVCMC Anil Pawar, an IAS officer, is accused of orchestrating and sustaining this cartel.
The ED investigation showed that after Pawar assumed the role of commissioner of VVCMC, the commission fee was set at Rs 2025 per sq ft for the commissioner and Rs 10 per sq ft for his junior, Y S Reddy (Deputy Director Town Planning), based on the total project area from the builders. During searches at twelve premises associated with Pawar, the ED seized Rs 1.33 crore in unaccounted cash, along with numerous incriminating documents and devices. These included property documents in the names of relatives and benamidars, as well as cash and cheque deposit slips, among others.
The ED sources said digital devices seized during the operations revealed Pawar’s close involvement in creating a nexus of VVCMC officials and architects, CAs, and liaisoners.
The money laundering case pertains to the illegal construction of 41 residential and commercial buildings on govt and private land under VVCMC’s jurisdiction since 2009. This includes a 60acre tract designated for sewage treatment and dumping facilities. Although Pawar was not the VVCMC chief at the time of construction, he failed to take action against the developments after assuming office, despite receiving complaints. The 41 buildings were recently demolished following a Bombay high court order. Flat buyers lost their money as well as their homes.
Raut claims Bhuse used influence to get former Vasai-Virar civic chief appointed
Mumbai : Even as the ED raided locations linked to former Vasai-Virar civic chief Anil Pawar in connection with an illegal construction scam, Shiv Sena (UBT) politician Sanjay Raut alleged that the official was appointed with the intervention of school education minister Dada Bhuse by bending the rules.Bhuse belongs to Dy CM Eknath Shinde’s Shiv Sena. Bhuse admitted that Pawar was his relative. “It is true that Pawar is distantly related to me. His appointment was done during Uddhav Thackeray’s tenure as chief minister,” Bhuse said. Raut said Bhuse’s wish was not fulfilled by Thackeray but by Shinde. — Priyanka Kakodkar
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