NEW DELHI: A significant cartel, comprising architects, chartered accountants, and officials of the Vasai Virar City Municipal Corporation in Maharashtra, has been implicated in extensive illegal construction on land designated for sewage treatment plants. According to the Enforcement Directorate (ED), these individuals sold this land fraudulently to the public.
The federal agency confirmed that on July 1, they conducted searches at 16 sites related to a money laundering investigation concerning 41 illegal buildings in the Vasai Virar area.
During these raids, the ED froze bank deposits and mutual funds valued at ₹12.71 crore and seized ₹26 lakh in cash, along with various incriminating documents and devices.
The money laundering case originated from an FIR lodged by the Mira Bhayandar Police against several builders and local accomplices.
According to the ED, the allegations focus on the unauthorized construction of residential and commercial buildings on both government and private land controlled by the Vasai Virar City Municipal Corporation (VVCMC) since 2009.
Over time, 41 illegal structures have been erected on plots reserved for sewage treatment and waste disposal as per the approved development plan of Vasai Virar City.
“The accused builders and developers misled the public by erecting these illegal buildings on such land and selling them with forged approval documents. Despite knowing these constructions were unauthorized and liable for demolition, they deceived buyers into purchasing units within these buildings, committing serious fraud,” the ED alleges.
The Bombay High Court mandated the demolition of all 41 buildings in a July 2024 ruling. Subsequently, residents filed a special leave petition (SLP) with the Supreme Court, which was dismissed, leading to the demolition of these structures by the VVCMC on February 20.
The investigation revealed that a significant cartel of architects, chartered accountants, intermediaries, and VVCMC officials are colluding to facilitate widespread illegal construction in the VVCMC jurisdiction.
The searches unearthed incriminating digital devices indicating the involvement of VVCMC officials in this illegal construction scheme. Furthermore, these devices revealed a close connection between VVCMC officials, architects, chartered accountants, and intermediaries, showcasing extensive corruption and the flow of black money for construction approvals, according to the ED.
The initial round of searches in this case was conducted by the ED in May.
