ED Seizes ₹32 Crore Cash, Diamond-Studded Jewellery, Bullion From VVMC Deputy Town Planner In Vasai-Virar Illegal Construction Scam

Mumbai: The Enforcement Directorate (ED) has seized unaccounted assets worth over Rs 32 crore during search operations in Nalasopara, Vasai, and Virar near Mumbai, as well as in Hyderabad, in connection with a money laundering probe linked to land grabbing illegal land development and unauthorized construction projects.

The agency on Thursday said it seized approximately Rs 8.6 crore in cash, along with diamond-studded jewellery and bullion worth Rs 23.25 crore, from the residence of Yumiganu Shiva Reddy (Y.S. Reddy), Deputy Director of Town Planning at the Vasai-Virar City Municipal Corporation (VVMC). Searches were conducted at his residence in Nalasopara, his municipal office, and the family’s residential premises in Hafeezpet, Hyderabad.

ED officials seize ₹32 crore cash, jewellery, and bullion from VVMC Deputy Town Planner Y.S. Reddy’s in Vasai-Virar illegal construction scam

According to sources, Reddy's name surfaced during the investigation after a few Assistant Commissioner-rank officers of the Vasai-Virar City Municipal Corporation (VVMC) filed a complaint with the Mira Bhayandar–Vasai Virar Police Commissionerate. The complaint highlighted multiple irregularities and exposed a nexus between corrupt civic officials and a network of builders involved in 41 instances of illegal residential-cum-commercial constructions in Agrawal Nagar, Nalasopara (East) within the Vasai-Virar region.

Reddy, who has served in the town planning department for over a decade, is suspected to have helped builders in fraudulently obtaining documents from the corporation.

ED officials seize ₹32 crore cash, jewellery, and bullion from VVMC Deputy Town Planner Y.S. Reddy’s in Vasai-Virar illegal construction scam

Reddy was earlier arrested in April 2016 by the Thane unit of the Anti Corruption Bureau (ACB) for allegedly offering Rs 25 lakh to a Shiv Sena corporator to stop going ahead with court cases against him.

According to official sources, ED has intensified its probe and summoned Y.S. Reddy, along with former Bahujan Vikas Aghadi (BVA) corporator Sitaram Gupta identified as a key conspirator his brother Arun Gupta, and relative Anil Gupta. Vijay Tambat, alias Vijay Salvi, an associate of Sitaram Gupta, has also been summoned, along with several other builders. The summons are scheduled for Friday, with further rounds of questioning for other suspects planned for next week.

In addition to the residences and offices of Y.S. Reddy and the Gupta family, ED teams also carried out searches at the premises of several builders, including

# Raisahab Janardan Jaiswal,

# Vijay Pursttam Salvi,

# Radheshyam Sharma,

# Virendra Shitalprasad Shukla,

# Sunil Biyala,

# Lalram Sukhram Mali,

# Jagannarayan Balkaran Gupta,

# Ashok Vishal Singh,

# Ajay Harilal Gupta, and Arun H. Gupta.

in their residential and official primises of Borivali, Kandivali, Thane Bhayander, Vasai, Nalasopara and Palghar.

The ED searches were conducted as part of an investigation under the Prevention of Money Laundering Act (PMLA), 2002, targeting a syndicate allegedly involved in the illegal development of 41 unauthorized residential and commercial buildings were constructed on land designated for sewage treatment and dumping grounds under Vasai Virar Municipal Corporation (VVMC) region."Even with prior knowledge that these buildings were unauthorised and would eventually be demolished, the developers misled the people by selling rooms in these buildings thereby committing serious fraud," the agency added.

The Bombay High Court ordered the demolition of all 41 buildings on July 8, 2024. An appeal by residents was dismissed by the Supreme Court, and the demolition was completed by VVMC on February 20, this year.

The ED investigation revealed that large-scale illegal construction activities in the Vasai-Virar region have allegedly been ongoing since 2009. Key accused in the case include Sitaram Gupta, Arun Gupta, and several others. The probe uncovered a nexus between corrupt civic officials and a network of builders who manipulated land-use classifications, forged construction approvals, and created fake agreements to sell illegally constructed flats. Officials found that municipal documents had been tampered with, zoning permissions fabricated, and in some cases, entire building proposals were fabricated without any official sanction. The accused reportedly exploited bureaucratic loopholes and political patronage to sustain these illegal activities over several years.