₹32 Crore Seized in Money Laundering Probe Linked to Vasai-Virar Land Fraud

Mumbai, May 15:In a major crackdown on financial crimes and illegal construction, the Enforcement Directorate (ED) has seized assets worth over ₹32 crore following coordinated raids at 13 locations across Mumbai and Hyderabad. The operation is linked to an ongoing investigation into a multi-crore illegal land development and money laundering racket.

Conducted on May 14 and 15 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the searches led to the recovery of ₹9.04 crore in cash, along with diamond-studded jewellery and bullion valued at approximately ₹23.25 crore. In addition, ED officials reportedly recovered a significant volume of documents deemed incriminating.

The raids targeted a suspected syndicate allegedly involved in the illegal development of 41 mixed-use buildings on nearly 60 acres of public land in the Vasai-Virar region—land originally reserved for sewage treatment plants and dumping grounds as per the city’s development plan.

According to ED sources, the accused forged municipal clearances to construct and sell residential and commercial units on encroached land, thereby violating urban planning norms and environmental regulations. The operation allegedly involved a network of shell companies and laundering channels that spanned both Mumbai and Hyderabad.

“This was a case of systematic fraud, wherein developers knowingly deceived the public by selling units in buildings that had no legal sanction,” an ED official said, adding that fabricated documents were used to mislead homebuyers.

The agency’s probe stems from multiple FIRs registered by the Mira Bhayandar Police Commissionerate against local builders, land agents, and other operatives. The unauthorized constructions date back to 2009 and were carried out on both government and private land falling under the jurisdiction of the Vasai Virar Municipal Corporation (VVMC).

The matter escalated to the judiciary, with the Bombay High Court, in an order dated July 8, 2024, directing the demolition of all 41 illegal buildings. A Special Leave Petition (SLP) filed by affected families was later dismissed by the Supreme Court, clearing the way for action. The court-ordered demolition was fully executed by the VVMC on February 20, 2025.

ED officials confirmed that the investigation remains ongoing. Authorities are now working to map the financial trail, identify all individuals and entities involved, and assess the total scale of fraud and money laundering committed.

The case underscores the growing nexus between unregulated urban expansion and financial crime, prompting calls for stricter oversight in real estate development and municipal governance.