Did the ED Really Seize Rs 32 Crore in Assets During Raids on Builders and Officials in Vasai-Virar City Land Scam?
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Synopsis
In an unprecedented move, the ED has launched extensive raids in Mumbai and Hyderabad, targeting builders involved in a massive land scam in Vasai-Virar City. With assets worth Rs 32 crore seized, including cash and jewelry, this case sheds light on a web of deceit that has exploited unsuspecting home buyers. Discover the details behind this high-stakes investigation.
Key Takeaways
- The ED seized Rs 32 crore in cash and assets related to a major land scam.
- Illegal constructions on government land have been a significant issue in Vasai-Virar.
- 41 unauthorized buildings were demolished as part of the enforcement actions.
- Key figures involved include builders and local government officials.
- The case emphasizes the need for vigilance in real estate transactions.
Mumbai, May 15 (NationPress) In a significant crackdown against builders and their local associates, the ED conducted searches at 13 locations across Mumbai and Hyderabad on Thursday, confiscating cash and jewelry valued at approximately Rs 32 crore. This operation is linked to the illegal construction of residential and commercial buildings on government land in Vasai-Virar City.
The accused misled home and office buyers by creating counterfeit documents, allowing them to construct and sell properties on both government and private land, an ED official reported. In February, civic authorities demolished 41 of these unauthorized structures.
This case involves the “illegal construction of mixed-use buildings on government and private land” under the jurisdiction of the “Vasai Virar Municipal Corporation (VVMC)” dating back to 2009, as noted by an ED representative.
Key figures in this extensive scam include Sitaram Gupta, Arun Gupta, and others, including the Deputy Director of Town Planning from the civic agency, Y.S. Reddy.
During the raids at Reddy's location, authorities seized Rs 8.6 crore in cash along with diamond-studded jewelry and bullion worth Rs 23.25 crore, according to the official.
Over time, 41 illegal structures were erected on land designated for a “Sewage Treatment Plant” and a “Dumping Ground” as per the approved development plan for Vasai Virar City, the official stated.
The Directorate of Enforcement (ED), Mumbai Zonal Office, executed these multi-city searches under the Prevention of Money Laundering Act (PMLA), 2002, over two days starting Wednesday.
Detailing the confiscation, the ED reported that investigators seized Rs 9.04 crore in cash, diamond-studded jewelry and bullion valued at Rs 23.25 crore, and a significant number of incriminating documents.
The investigation was initiated following multiple FIRs filed by the Mira Bhayandar Police Commissionerate against builders and local associates.
The implicated builders and developers deceived the public at large by constructing illegal buildings on both government and private land, subsequently selling them by fabricating approval documents.
“Despite knowing these structures were unauthorized and would ultimately face demolition, the developers misled buyers by selling units within these buildings, thus committing serious fraud,” stated the ED.
The federal agency further noted that the Bombay High Court on July 8, 2024, ordered the demolition of all 41 buildings, which were fully demolished by VVMC on February 20, 2025, following the dismissal of an SLP filed by the families residing in these illegal properties.
Maharashtra's fifth-largest city, Vasai-Virar, consists of four previously independent municipal councils: Vasai (Bassein), Virar, Nallasopara, and Navghar-Manikpur, along with several towns to the east and west of the urban area. It is situated in the Konkan division.
Point of View
I see this operation by the ED as a critical step towards ensuring accountability in the real estate sector. The implications of such scams are far-reaching, affecting not just individual buyers but the integrity of urban development as a whole. It is crucial for the government and enforcement agencies to maintain vigilance against such fraudulent activities to protect citizens' rights.
NationPress
24/07/2025
Frequently Asked Questions
What triggered the ED's investigation into the Vasai-Virar land scam?
The ED's investigation was initiated based on multiple FIRs registered by the Mira Bhayandar Police Commissionerate against builders and local associates involved in illegal construction activities.
What were the key findings during the ED's raids?
During the raids, the ED seized Rs 9.04 crore in cash and diamond-studded jewelry and bullion worth Rs 23.25 crore, along with numerous incriminating documents.
How many illegal buildings were constructed in this scam?
A total of 41 illegal buildings were constructed on government land, which were subsequently demolished following a court order.
What are the implications of the ED's action?
The ED's action signifies a robust approach to tackling corruption in the real estate sector, aiming to safeguard the interests of home and office buyers.
What legal measures are being taken against the accused?
The accused builders and officials are facing legal actions under the Prevention of Money Laundering Act (PMLA) and are subject to investigations based on the findings from the raids.
