Daijiworld Media Network - Mumbai
Mumbai, May 15: The Enforcement Directorate (ED) on Wednesday launched a major crackdown on an alleged land and construction scam within the Vasai-Virar Municipal Corporation (VVMC), conducting raids at 13 locations linked to a multi-crore illegal construction racket.
The action is part of a larger money laundering probe into the unauthorised development of 41 mixed-use buildings on nearly 60 acres of land earmarked for sewage treatment and dumping grounds. The buildings, located in Agrawal Nagar and Nalasopara (East), were constructed using forged documents and fake zoning approvals, according to ED sources.
The searches targeted several key players, including Vasai-based builder Arun Gupta, VVMC officials, and a group of alleged document forgers. ED officials say the syndicate misused fabricated sale deeds, fake building approvals, and manipulated land use classifications to present the constructions as legal, selling flats to unsuspecting buyers, many from economically weaker sections.
Constructed between 2010 and 2012, the 41 buildings were demolished in December 2024 after the Bombay High Court ruled the constructions violated zoning and civic norms. The demolition, carried out by VVMC, left over 2,500 families homeless.
The ED registered an Enforcement Case Information Report (ECIR) under the Prevention of Money Laundering Act (PMLA), based on multiple FIRs filed by the Mira Bhayandar Vasai Virar police commissionerate.
One of the key FIRs, lodged at Achole Police Station in 2023, alleged that former VVMC corporator Sitaram Gupta, his brother Arun Gupta, and their associates fraudulently acquired 60 acres—30 acres of private land and 30 acres of civic land—by using fake ownership documents. These parcels were then sold to developers who built and sold flats worth between ?500 crore to ?1,000 crore, prompting the ED to act.
ED sources revealed that the scam involved a well-organized nexus of corrupt civic officials, local strongmen, and builders, who manipulated land records, forged permissions, and bypassed official approvals with alleged political backing. The agency has reportedly uncovered tampered municipal records, fake zoning clearances, and even entirely fabricated building proposals.
Earlier in March 2025, the ED recorded the statement of Ajay Sharma, caretaker of one of the affected land parcels. Sharma had filed an FIR in June 2023, alleging land grabbing and forgery, which forms a crucial part of the ED’s investigation.
The probe continues as the ED works to identify the money trail and hold those responsible accountable for the massive civic and financial fraud.