3 min readMumbaiMay 15, 2025 08:35 PM IST
First published on: May 14, 2025 at 11:00 AM IST
The Enforcement Directorate (ED) Wednesday raided 13 locations in Nalasopara, Vasai, and Virar near Mumbai, and Hyderabad in connection with a money laundering probe in an illegal buildings construction case. The agency Thursday said it seized approximately Rs 8.6 crore cash and Rs 23.25 crore worth of diamond-studded jewellery and bullion from the house of Y S Reddy, deputy director of town planning, Vasai-Virar City Municipal Corporation (VVMC).
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 court case proceedings against him.
Reddy’s name cropped up after the ED went through the complaint filed by a number of assistant municipal commissioners of VVMC before the commissioner regarding 41 illegal residential-cum-commercial constructions in Agrawal Nagar in Nalasopara (East).
Surprisingly, Reddy has been posted in the town planning department for over 10 years. He is suspected to have helped builders in fraudulently obtaining documents from the corporation.
The money laundering investigation is based on multiple FIRs registered by the Mira Bhayandar Vasai Virar police commissionerate against builders, local aides and others for “illegal construction of residential-cum-commercial buildings on government and private land” under the jurisdiction of VVMC since 2009.
According to the ED, documents seized during raids reveal a large-scale scam involving illegal construction in Vasai Virar area undertaken with VVMC officials involved.
The places that were raided by officials of Zone 2 of ED Mumbai included the residences of Reddy in Nalasopara and in Hafeez Peth-Hyderabad, house of a former Bahujan Vikas Aghadi Party (BVA) corporator Sitaram Gupta, his brother Anil Gupta, and premises belonging to Raisahab Jaiswal, Radhyesham Sharma, Virendra Shukla alias Guddu Shukla, Sunil Biyala, Lalaram Mali, Jagnarayan Gupta alias Pappu Gupta, Ashok Singh, Ajay Gupta and Vijay Salvi.
The ED has also summoned more than 10 people, asking them to join the investigation. Among those summoned are Sitaram Gupta, Arun Gupta and Reddy.
In a statement released on Thursday, the ED said 41 illegal buildings were constructed on land reserved for “sewage treatment plant” and “dumping ground” as per the approved development plan of Vasai Virar city. “The accused builders and developers deceived the public at large by constructing illegal buildings on such land and subsequently selling it to them by fabricating approval documents,” the ED said.
“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 41 buildings were demolished on February 20, 2025 by the order of Bombay High Court, which the Supreme Court later upheld. Families living in these buildings were left homeless.
According to the ED, key perpetrators of the alleged scam have been identified as Sitaram Gupta and Arun Gupta.
Dozens of ED officials are carrying out the searches at these 13 locations -- many of which are linked to builders and their henchmen — under the Vasai Virar Municipal Corporation (VVMC). (File Photo) 
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