ED Freezes ₹12.71 Crore, Seizes ₹26 Lakh Cash; Digital Evidence Exposes Nexus Between Architects, CAs, Liaison Agents & VVCMC Officials In Vasai-Virar Illegal Construction Scam

Mumbai: The Enforcement Directorate (ED) has frozen over Rs 12.71 crore across bank balances, demat accounts, mutual funds, and fixed deposits along with Rs 26 lakh in cash, during the second phase of searches in the Vasai-Virar illegal construction case.

The agency also seized several incriminating documents and digital devices. According to an ED officials statement, the recovered documents and digital evidence reveals the involvement of Vasai Virar City Municipal Corporation (VVCMC) officials in facilitating large-scale illegal constructions. The data also points to a close nexus between VVCMC officials, architects, chartered accountants, and liaison agents, exposing widespread corruption and the flow of unaccounted money in securing building approvals.

The second round of searches was conducted at 16 locations across Vasai-Virar and Mumbai’s western suburbs, including Kandivali and Juhu, on Tuesday by the central agency. Among the premises searched were the residential and official properties of well-known architect Sanjay Narang in Juhu, ED officials confirmed.

According to investigators, the action targeted a network of architects and liaison agents suspected of aiding builders in illegally occupying 60 acres of civic land earmarked for sewage treatment plants and dumping grounds to construct 41 unauthorized buildings.

Official sources said the linked architects and middlemen allegedly acted as intermediaries between private builders and officials of the Vasai Virar Municipal Corporation (VVMC), particularly in the Town Planning Department headed by Y.S. Reddy. They are accused of routing bribe payments to to obtain illegal approvals and regularize unauthorised developments.

Y.S. Reddy, the former deputy director of town planning at VVMC, has been suspended by the civic body following serious allegations of financial misconduct. During earlier searches at his residence, investigators recovered Rs 8.6 crore in cash, diamond-studded jewellery, and bullion collectively valued at Rs 23.25 crore. The total unaccounted assets linked to Reddy are estimated to exceed Rs 31.85 crore.

The ED probe has revealed what officials describe as a “cartel” operating in collusion within VVCMC’s jurisdiction, comprising architects, chartered accountants, liaison agents, and municipal officers.

The investigation alleged that architects played a central role in the scam by misusing their professional responsibilities. They were expected to ensure that construction proposals complied with municipal regulations, including submitting structural reports and obtaining approvals such as the Intimation of Disapproval (IOD), Commencement Certificate (CC), and Occupation Certificate (OC). However, architects allegedly manipulated land-use classifications and bypassed development control norms in collusion with liaison agents and civic officials.

The central agency also found that municipal documents had been tampered with, zoning permissions were fabricated, and, in some instances, entire building proposals were manufactured without any official sanction. The accused are believed had played the lead role in manipulated land use classifications, forged construction approvals, and executed fake sale agreements for illegally built flats.

ED Freezes ₹12 Crore, Seized ₹25 Lakh Cash From Architects, Middlemen In Vasai-Virar Illegal Construction Probe

Official sources said the scam thrived for years due to bureaucratic loopholes and alleged political patronage, allowing unauthorized developments to pass under the radar.