ED Seizes Rs 71 Crore in Properties in Major Mumbai Municipal Corruption Case
The Enforcement Directorate (ED) has taken a significant step in the fight against corruption by attaching immovable properties worth Rs 71 crore in a major case involving the Vasai Virar City Municipal Corporation (VVCMC). The properties belong to IAS officer Anil Pawar, Sitaram Gupta, and several others. The action was taken under the provisions of the Prevention of Money Laundering Act (PMLA).
The ED initiated its PMLA investigation based on multiple First Information Reports (FIRs) registered by the Mira Bhayandar Police Commissionerate. The case pertains to illegal construction activities on government and private lands under the VVCMC's jurisdiction since 2009. Specifically, 41 illegal buildings were constructed on land reserved for a Sewage Treatment Plant and a Dumping Ground, as per the approved development plan for Vasai Virar City.
The Bombay High Court ordered the demolition of all 41 illegal buildings on July 8, 2024. A subsequent Special Leave Petition (SLP) filed before the Supreme Court by families residing in these buildings was dismissed. The VVCMC completed the demolition of all structures on February 20, 2025.
The ED's investigation revealed that an organized cartel of VVCMC officials, including the Commissioner, Deputy Director Town Planner, Junior Engineers, Architects, Chartered Accountants, and Liaisoners, operated in collusion across multiple departments. In the department responsible for acting against illegal construction, Anil Pawar organized a cartel to extract bribes for protecting already constructed illegal buildings and ignoring ongoing unauthorized construction. This cartel is responsible for large-scale illegal construction within the VVCMC's jurisdiction.
The PMLA investigation revealed a fixed commission rate of Rs 150 per square foot was imposed on illegal projects, of which Rs 50 per square foot was directly received by Pawar as his share. He also accepted bribes at the same rate to protect the 41 illegal buildings. Furthermore, in the Town Planning Department, the investigation found that after Anil Pawar joined as Commissioner of VVCMC, he set bribe rates at Rs 20-25 per square foot for developments in the Urban Zone and Rs 62 per square foot for the Green Zone to grant various development approvals.
Through these methods, Anil Pawar earned Proceeds of Crime (POC) amounting to approximately Rs 169 crore. Consequently, Anil Pawar, the former Commissioner, was arrested on July 13, 2025, along with three others. All are currently in judicial custody. A Prosecution Complaint in this case was filed on October 10, 2025, and the Special PMLA Court is yet to take cognizance of it.
The ED investigation further revealed that Anil Pawar created numerous entities in the names of family members, relatives, and 'benamidars' to launder the bribe money. The POC was used to purchase gold, diamond, and pearl jewellery, expensive sarees, invest in warehouses, buy farmhouses, and invest in a residential project in his wife's name, among other things. Most of the POC was infused into immovable properties in the names of his wife, daughters, and other relatives to project them as untainted. Total properties worth Rs 44 crore have been attached via a Provisional Attachment Order.
Earlier, multiple search operations in the case led to the seizure of approximately Rs 8.94 crore in cash, diamond-studded jewellery and bullion worth Rs 23.25 crore, and the freezing of bank balances, shares, mutual funds, and fixed deposits worth Rs 13.86 crore. Further investigation into the matter is ongoing.
