MUMBAI: Former Vasai-Virar civic chief Anil Pawar, along with three others, has been implicated in a money laundering case involving a “deliberate” abuse of administrative authority and the financial system to facilitate an extensive fraud, according to the Enforcement Directorate (ED) in a Mumbai court on Wednesday.
The ED revealed that “hawala and angadia” channels were utilized to launder illicit proceeds not just within Maharashtra but also in other states. Following this, the special court, which included two real estate developers among the accused, placed all four individuals in custody one week post-arrest.
The hawala system is an informal method for transferring funds and is considered illegal in India, while angadias serve as couriers who move cash, diamonds, and jewelry for a fee.
In addition to IAS officer Pawar, the other accused include VVCMC town planner Y Shiva Reddy and builders Sitaram Gupta and Arun Gupta, all linked to the illegal construction of buildings in Vasai-Virar, located near Mumbai in the Palghar district.
All four were presented before special judge Raju Rote, hearing cases under the Prevention of Money Laundering Act (PMLA), who ordered them to undergo 14 days of judicial custody.
Having been arrested on August 13, the accused remained in ED’s custody until August 20. While the agency did not seek an extension of their custody, it argued that judicial confinement was essential to maintain the integrity of an ongoing investigation at a critical stage.
The ED asserted that the accused formed a “sophisticated cartel of officers, architects, builders, and intermediaries,” and had displayed a calculated misuse of administrative authority and the financial system for high-value fraud.
They pointed out that the activities of the accused not only resulted in significant financial loss but also eroded public trust in the systems designed to assist citizens.
The agency noted that the operation suggested the accused had the capability to obstruct the investigation, tamper with evidence, and influence witnesses. As the probe continues, the agency is working to establish the total monetary value of the laundered proceeds.
The investigation indicates a well-organized network was operational to channel proceeds from the fraud committed by the accused.
The ED alleged that the laundering activities extended beyond Maharashtra, linking to interstate and even cross-border dealings.
Moreover, it has been revealed that funds generated from the offenses were attempted to be reintegrated into bank accounts of the accused’s relatives, misrepresented as legitimate income.
The agency emphasized the real risk that the accused might sway witnesses, tamper with systems, and liquidate assets acquired through illicit means, justifying the need for judicial custody.
This case involves the unlawful construction of mixed-use buildings on both government and private land under the VVCMC’s jurisdiction.
According to the agency, 41 illegal buildings were erected over time on land intended for a sewage treatment facility and a dumping ground, as per the approved development plan for Vasai-Virar.
The accused developers, Sitaram and Arun Gupta, allegedly exploited the public by constructing unauthorized buildings and selling residential and commercial units based on falsified approval documents. They deceived buyers into purchasing rooms, fully aware that the constructions were unauthorized and slated for demolition, thus committing fraud.
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