ED Raids 13 Locations in Vasai-Virar Over Illegal Construction on Reserved Land

The Enforcement Directorate (ED) has launched a significant investigation into a large-scale illegal construction scam in the Vasai-Virar region. On May 14, 2025, the agency carried out searches at 13 locations related to a money laundering case tied to the unauthorized construction of 41 buildings across around 60 acres of land. Preliminary findings point to a well-established nexus involving civic officials, politicians, and real estate developers.

The ED suspects that proceeds from these unauthorized developments were laundered through various shell companies and benami transactions. Officials seized documents, digital records, and other evidence during the searches. The probe has also raised questions about regulatory lapses and the role of the local municipal authorities in allowing such massive unauthorized development.

What makes the case particularly serious is that the land in question was reserved for crucial civic amenities such as sewage treatment plants and garbage disposal facilities, as per the 2010 development plan. Instead of being used for public infrastructure, it was illegally converted and sold for residential development through a web of forged documents and bogus approvals.

The investigation has uncovered that several developers, with the alleged backing of influential individuals, managed to build on environmentally sensitive land, including wetlands and reserved plots. The ED’s probe was triggered by multiple complaints and FIRs filed by homebuyers, many from economically weaker sections, who found themselves defrauded after purchasing flats in these illegal constructions.

According to ED sources, false sale agreements and manipulated approvals were used to lure unsuspecting buyers, with some documents even bearing fake notary stamps and fabricated land conversion records.

Among those under the ED’s scanner is Y S Reddy, the Deputy Director of Town Planning at the Vasai Virar City Municipal Corporation (VVMC). Reddy has a controversial history and was arrested nearly eight years ago in a separate corruption case. Another key figure is Sitaram Gupta, a former corporator from the Bahujan Vikas Aghadi (BVA), who has been previously arrested for his role in similar scams involving cheating and forgery.

The ED has also searched properties linked to Vijay Tambat, also known as Vijay Salvi, a developer allegedly connected to underworld gangster Chhota Rajan. These individuals are suspected of orchestrating the fraudulent conversion and sale of land in violation of the city's development regulations.

Homebuyers affected by the scam have been left in a precarious position. Many approached the courts in an attempt to halt demolition of their flats, arguing that they were unaware of the illegal status of the buildings. However, the judiciary, including the Supreme Court, has refused to grant any relief. The apex court has directed that demolition of the illegal structures must proceed and advised the homebuyers to approach the government for possible rehabilitation or alternate accommodation.

The land used in this scam included large portions of wetlands and private property earmarked for public use under the approved development plan. The accused allegedly forged land records to convert these plots for residential development, bypassing both environmental norms and planning permissions. These actions not only reflect blatant disregard for urban planning laws but also indicate a systematic and prolonged abuse of official powers and procedures.

This incident underscores a wider issue facing peri-urban areas near Mumbai, where rapid urbanization and demand for affordable housing have created fertile ground for unauthorized development. The scale and organization of the Vasai-Virar scam point to a sophisticated operation involving coordinated efforts between private developers and public officials. With the ED intensifying its inquiry, more revelations about financial irregularities and shell entities used to launder money are expected to surface in the coming weeks.