Palghar, Maharashtra: In a sweeping crackdown on real estate fraud, the Enforcement Directorate (ED) has seized over ₹32 crore in cash, diamond-studded jewellery, and gold bullion during search operations conducted across 13 locations in Mumbai and Hyderabad. The raids, carried out on May 14 and 15, were conducted under the Prevention of Money Laundering Act (PMLA), 2002.
The ED's action resulted in the recovery of ₹9.04 crore in cash, and gold and diamond jewellery valued at ₹23.25 crore. Investigators also seized a significant amount of incriminating documents related to the scam.
The probe centers around the unauthorized construction of 41 residential and commercial buildings within the Vasai Virar Municipal Corporation (VVMC) limits, specifically on land designated for sewage treatment plants and dumping grounds in the city's development plan.
ED officials inspecting seized cash and jewellery during raids across Mumbai and Hyderabad
The ED initiated its investigation based on multiple FIRs filed by the Mira-Bhayandar Police Commissionerate against implicated builders, local authorities, and other individuals. The investigation revealed that developers had been illegally constructing these buildings on both government and private land since 2009.
These unauthorized structures were then fraudulently sold to the public using forged approval documents, with the developers fully aware of their illegal status and impending demolition. This deceitful practice defrauded numerous unsuspecting homebuyers and constituted a severe case of public deception and financial fraud.
The Bombay High Court had previously ordered the demolition of all 41 illegal buildings on July 8, 2024, a decision upheld by the Supreme Court after a petition by affected families was dismissed. The VVMC completed the demolition on February 20, 2025 which displaced nearly 2,500 families.
The ED's ongoing investigation has identified Sitaram Gupta, Arun Gupta, and several others as key players in the scam. The probe has also uncovered evidence of deep collusion between the developers and VVMC officials, which facilitated the illegal constructions over a prolonged period.
As reported earlier by the Free Press Journal, ED officials raided Sitaram Gupta’s residence in Santosh Bhuvan, Nalasopara on Wednesday morning. They also searched offices and properties associated with BJP leader Vivek Tiwari and builder Anil Gupta in Ambawadi. Additional searches were conducted at flats in Ram Rahim Accord Society, Madhuban, Vasai East, and at Apna Sahakari Bank in Ambawadi.
Furthermore, a significant breakthrough occurred during the raid on the residence of Y.S. Reddy, Deputy Director of Town Planning at VVMC. ED officials recovered ₹8.6 crore in cash and gold and jewellery worth ₹23.25 crore from his premises. Additionally, numerous documents implicating senior municipal officials in the scam were also seized.
In March, Ajay Sharma, a private landowner, was questioned for over seven hours at the ED’s Mumbai office. Investigators are also examining the role of municipal corporation officials amid allegations that they provided protection to the illegal construction activities. Several officials are reportedly under ED’s scanner and may soon be summoned for interrogation.
This operation is being hailed as a major step in combating corruption in urban development, exposing how inadequate oversight and official complicity allowed a decade-long illegal construction racket to thrive, victimizing ordinary citizens and undermining essential public infrastructure planning. Further investigations are currently underway.
