Illegal Construction Scam in Vasai: ED Raids Former Civic Chief’s Residence in Massive Crackdown

In a major development linked to a large-scale illegal construction scam in Vasai East, the Enforcement Directorate (ED) on Tuesday raided 12 locations across Mumbai, Pune, and Nashik. These included the residence of former Vasai-Virar City Municipal Corporation (VVCMC) commissioner Anil Pawar, his relatives, and associates. The operation was part of an ongoing money laundering investigation into the approval and development of over 41 illegal buildings, which were built on reserved land and later demolished on court orders.

Massive Raids and Seizures

During one of the searches, ED officials recovered over ₹1 crore in cash. The agency is now focusing on a suspected nexus between senior civic officials, builders, intermediaries, architects, and chartered accountants who allegedly enabled the illegal construction. According to ED sources, bribes ranging from ₹20-25 per sq ft were allegedly paid to top civic officers, while junior officials were paid ₹10 per sq ft to facilitate unauthorized building plans.

The probe also revealed that approval documents were forged to deceive homebuyers, many of whom were low-income families, migrant workers, and shopkeepers. These buyers were sold homes in buildings constructed on a 60-acre plot—land that was originally reserved for a sewage treatment plant and dumping ground. Eventually, the Bombay High Court ordered the demolition of these 41 buildings in July 2024, which left over 2,500 families homeless. The Supreme Court also dismissed a plea filed by affected residents seeking to halt the demolition.

Pawar’s Residence Raided

On Tuesday morning, ED officials faced resistance when they arrived at Anil Pawar’s residence. The door reportedly remained closed for over 30 minutes, forcing the team to summon a locksmith. Eventually, it was opened by occupants who claimed they hadn’t heard the doorbell. Pawar was present during the raid.

This isn’t the first time the ED has taken action in this case. Back in May 2024, similar raids were conducted at 13 premises in Vasai-Virar and Hyderabad. That operation led to the seizure of ₹8.68 lakh in cash, diamond-studded jewellery, and bullion worth ₹23.25 crore. One of the high-profile individuals targeted then was Y Reddy, the then-deputy director of town planning in VVCMC. He was later suspended and now faces a departmental inquiry. His case has also been shared with the Maharashtra Anti-Corruption Bureau (ACB).
 

The Bigger Scam: Bribes, Forged Documents, and Civic Inaction
 

According to ED sources, the core of the scam lies in systemic inaction and collusion. Despite repeated complaints and obvious violations, civic authorities failed to act for years. The investigation has unearthed WhatsApp chats and other digital communications that suggest widespread bribery and document manipulation.

Buyers were lured with fake approvals and false promises, while builders operated with impunity. Many of them allegedly worked closely with local politicians and civic officials to bypass regulations. The scam has brought to light how easily reserved public land was converted into residential blocks without basic legal clearances.
 

Public Fallout and Legal Action
 

The scam has triggered public outrage, especially as innocent buyers lost their life savings and homes. Over 2,500 families were rendered homeless after the court-ordered demolitions. Several builders and their local henchmen have been booked by Mira-Bhayandar police, while ED continues to expand its investigation under the Prevention of Money Laundering Act (PMLA).

As the investigation deepens, more arrests and financial seizures are expected. The focus now also includes tracing the money trail, particularly how proceeds from illegal construction were laundered and invested. The ED is reportedly coordinating with the Income Tax Department and other central agencies to build a watertight case.