A view of the construction site at the heart of the Vasai-Virar land scam investigation.
The Enforcement Directorate (ED) has frozen assets worth ₹12.71 crore related to a major land scam involving the Vasai-Virar Municipal Corporation. This investigation has revealed the illegal construction of numerous buildings on land meant for sewage treatment and waste disposal, often facilitated by forged documents. The ED’s ongoing raids are part of a larger effort to uncover corruption linked to various officials and developers. Future actions aim to trace financial connections and identify additional beneficiaries of this extensive scam.
The Enforcement Directorate (ED) has aggressively ramped up its investigation into the Vasai-Virar Municipal Corporation (VVMC) land scam, resulting in the freezing of assets totaling approximately ₹12.71 crore. This significant move is part of a broader inquiry that is probing various illegal land activities involving prominent builders and VVMC officials.
On July 1, 2025, the ED conducted extensive search operations at 16 locations across Mumbai, aimed at uncovering more evidence related to the scam. The investigation falls under the scope of the Prevention of Money Laundering Act (PMLA), 2002, focusing on the actions of a group led by Jayesh Mehta.
The recent search operations led to the freezing of assets found in bank accounts, fixed deposits, and mutual funds associated with the suspects. Additionally, during the raids, the authorities seized cash amounting to ₹26 lakh, along with numerous incriminating documents and digital devices that could provide further insights into the illegal activities.
The probe into this scam began with multiple FIRs lodged by the Mira Bhayandar Police Commissionerate against a network of builders, local henchmen, and officials associated with VVMC. Central to this case is the construction of 41 residential-cum-commercial buildings on both government and private land that was earmarked for sewage treatment and waste disposal. These illegal structures have been under scrutiny since 2009, as they were sold to unsuspecting buyers based on forged approval documents.
In a significant ruling, the Bombay High Court ordered the demolition of all 41 illegal buildings on July 8, 2024. Following the court’s directive, VVMC took the necessary steps and completed the demolition of these structures by February 20, 2025. Despite this, a Special Leave Petition filed by affected families was dismissed by the Supreme Court, sealing the fate of the illegal constructions.
The ongoing investigation by the ED has exposed a deep-rooted nexus that includes architects, chartered accountants, liaison agents, and VVMC officials, indicating systemic corruption. The evidence collated from seized digital devices suggests extensive manipulation of building approvals and the exploitation of regulatory loopholes that allowed for large-scale illegal constructions.
Earlier raids conducted in May 2025 had already uncovered substantial assets including cash worth ₹8.68 crore and over ₹23.25 crore in diamond-studded jewelry and bullion.
Furthermore, a senior official from the VVMC’s town planning department is now under scrutiny as the investigation reveals substantial unaccounted assets linked to individuals in positions of authority.
The ED is committed to tracing the money trail associated with this extensive scam. As investigations proceed, the agency is focused on identifying additional beneficiaries who may have profited from this illegal scheme. The ambitious approach by the ED signals a concerted effort to tackle and dismantle corruption networks that see illegal constructions proliferating across urban landscapes.
This scrutiny into the operations of VVMC, together with the ongoing investigation, is a crucial step towards accountability and the restoration of integrity within governmental operations related to urban development. The unfolding investigation emphasizes the importance of vigilance in urban planning and regulatory processes to prevent future fraudulent activities.
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