MUMBAI: The Bombay High Court deemed the arrest of Anil Pawar, former chief of the Vasai-Virar civic body near Mumbai, by the Enforcement Directorate (ED) as “illegal” in a money laundering matter, ordering his immediate release.
A bench comprising Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad stated that the ED lacked “tangible material” necessary for his arrest.
“We find that on August 13, 2025, the arresting officer had no material as stipulated under section 19 of the Prevention of Money Laundering Act, which indicates a belief that the person is guilty of the offence,” the HC stated. “There is no substantial evidence, and the ED’s case largely hinges on statements from certain architects and developers,” they added.
Pawar was detained by the ED on August 13. The ex-chief of the Vasai Virar City Municipal Corporation (VVCMC) in Palghar district filed a petition in the HC contesting his arrest and the subsequent orders from a special court that remanded him to judicial custody.
The high court also annulled the special court’s orders.
“The petition is successful to the extent that the arrest of the petitioner on August 13 is deemed illegal. The orders issued by the special judge for remand are quashed. The petitioner is to be released,” the HC declared.
Following the ruling, Additional Solicitor General Anil Singh, representing the ED, requested a stay on the order, which the high court denied.
Pawar is alleged to have collaborated with builders and developers to facilitate the construction of 41 illegal buildings in Vasai and Virar.
His counsel, Rajiv Shakdher, contended that the ED’s case concerns unauthorized constructions that emerged between 2008 and 2021, while Pawar assumed his role as VVCMC chief only in January 2022.
The ED has accused Pawar of being central to a money laundering scheme worth hundreds of crores, relying on builder testimonials, WhatsApp conversations, and cash trail investigations.
It has been alleged that senior officials, including Pawar, accepted significant bribes to ignore extensive illegal construction across nearly 60 acres.
A corruption case was registered against Pawar and others, leading to the ED’s money laundering investigation.
So far, the agency has arrested four individuals in connection with the case, including Pawar, VVCMC town planner Y Shiva Reddy, and two builders, Sitaram Gupta and Arun Gupta. All are currently in judicial custody.
The case pertains to unauthorized construction of residential and commercial buildings on government and private land within VVCMC’s jurisdiction.
The ED asserts that over time, 41 illegal buildings were erected on private and government land designated for a Sewage Treatment Plant and a Dumping Ground, according to Vasai-Virar’s approved development plans.
The accused developers are accused of defrauding the public by constructing illegal buildings and selling them, despite knowing they were unauthorized and marked for demolition.
The ED’s chargesheet indicated that Pawar acted as the chief controller of illegal constructions during his tenure as VVCMC commissioner from January 2022 to July 2025.
In flagrant violation of his legal responsibilities, Pawar supposedly facilitated and expanded the very network he was obligated to dismantle, claimed the ED.
