ED Seizes Assets Worth ₹32 Crore After Raids In Mumbai & Hyderabad In Illegal Land Development & Money Laundering Case

Mumbai: The Enforcement Directorate (ED) has seized unaccounted assets worth over Rs 32 crore following raids at 13 locations in Mumbai and Hyderabad, as part of an ongoing investigation into an alleged illegal land development and money laundering case.

The searches, carried out on May 14 and 15 (today) under the provisions of the Prevention of Money Laundering Act (PMLA), led to the recovery of Rs 9.04 crore in cash, and diamond-studded jewellery and bullion valued at approximately Rs 23.25 crore. Officials also recovered a significant volume of documents considered to be incriminating.

A major portion of the seizure Rs 8.6 crore in cash and jewellery and bullion worth Rs 23.25 crore was recovered from the Mumbai and Hyderabad residences of Y. S. Reddy, Deputy Director of Town Planning, Vasai Virar Municipal Corporation (VVMC). Investigators also recovered documents believed to expose a large-scale illegal construction scam in the Vasai Virar region, allegedly executed in collusion with VVMC officials.

The searches were part of an investigation under the Prevention of Money Laundering Act (PMLA), 2002, targeting a syndicate allegedly involved in the illegal development of 41 mixed-use buildings in the Vasai-Virar region. These structures were reportedly constructed on nearly 60 acres of land originally earmarked for sewage treatment plants and dumping grounds by the Vasai-Virar Municipal Corporation (VVMC).

According to ED sources, the syndicate allegedly forged municipal clearances and sold residential and commercial properties built on encroached public land, flouting urban planning and environmental norms. The racket is said to involve a complex web of shell companies and money laundering channels spanning Mumbai and Hyderabad.

The ED initiated its probe based on multiple FIRs registered by the Mira Bhayandar Police Commissionerate against several builders, local operatives, and others. The case pertains to the illegal construction of residential-cum-commercial buildings on both government and private land under the jurisdiction of the Vasai Virar Municipal Corporation (VVMC), with unauthorized activity dating back to 2009.

According to ED officials, 41 buildings were constructed illegally over time on land earmarked for public utilities, including a sewage treatment plant and dumping ground, as per the approved development plan of Vasai-Virar. The accused allegedly fabricated approval documents to mislead homebuyers, selling residential units despite having prior knowledge that the constructions were unauthorized and subject to demolition.

“This was a case of systematic fraud, wherein developers knowingly deceived the public by selling units in buildings that had no legal sanction,” an ED official said.

The matter reached the judiciary, and the Bombay High Court, in an order dated July 8, 2024, directed the demolition of all 41 illegal structures. A Special Leave Petition (SLP) filed by affected families was later dismissed by the Supreme Court. Subsequently, VVMC carried out the court-mandated demolition, which was completed on February 20, 2025.

ED officials said that the ongoing investigation will further examine the financial transactions, identify the complete network of individuals and entities involved, and determine the extent of money laundering and fraud perpetrated in the case.