ED Freezes Assets in Vasai-Virar Land Scam Investigation

News Summary

The Enforcement Directorate (ED) has frozen assets worth ₹12.71 crore related to a major land scam involving the Vasai-Virar Municipal Corporation. This investigation has revealed the illegal construction of numerous buildings on land meant for sewage treatment and waste disposal, often facilitated by forged documents. The ED’s ongoing raids are part of a larger effort to uncover corruption linked to various officials and developers. Future actions aim to trace financial connections and identify additional beneficiaries of this extensive scam.

Enforcement Directorate Freezes ₹12.71 Crore in Assets Amid Vasai-Virar Municipal Corporation Land Scam Investigation

The Enforcement Directorate (ED) has ramped up its investigation into the alleged land scam involving the Vasai-Virar Municipal Corporation (VVMC), resulting in the freezing of assets worth approximately ₹12.71 crore. This development follows fresh search operations conducted at 16 locations across Mumbai on July 1, 2025.

This crackdown is part of a broader investigation under the Prevention of Money Laundering Act (PMLA), 2002, centering around key suspect Jayesh Mehta and multiple others allegedly involved in illegal land activities.

Search Operations and Seizures

The recent searches yielded significant results, including the seizure of ₹26 lakh in cash, along with a trove of incriminating documents and digital devices that are expected to provide insights into the inner workings of the scam.

The ongoing investigation is fueled by multiple First Information Reports (FIRs) filed by the Mira Bhayandar Police Commissionerate against several builders, local henchmen, and officials of the VVMC. These FIRs center on the illegal construction of 41 residential-cum-commercial buildings, constructed on government and private land designated for sewage treatment and waste disposal since 2009.

Illegal Construction and Unlawful Sales

These unauthorized structures were reportedly sold to unsuspecting buyers using forged approval documents. Evidence suggests that the developers were aware of the illegal status of these buildings but proceeded with the sales regardless.

In a decisive move, the Bombay High Court ordered the demolition of all 41 illegal buildings on July 8, 2024, an action that was executed by the VVMC, completing the process on February 20, 2025. Affected families’ attempts to halt this demolition through a Special Leave Petition to the Supreme Court were unsuccessful, marking a significant setback for those involved.

Deep-Rooted Nexus and Corruption

The ED’s investigation has unveiled a troubling network of corruption, implicating not just builders, but also architects, chartered accountants, and liaison agents in coordination with VVMC officials. The seized digital evidence is reported to indicate a broad scheme of corrupt practices and manipulation of building approvals, thereby facilitating large-scale illegal construction.

This cartel appears to have taken advantage of regulatory loopholes and forged documents to orchestrate extensive illicit developments in the region.

Previous Investigations and Findings

This recent operation is not the first by the ED; earlier raids conducted in May 2025 resulted in significant seizures, including approximately ₹8.68 crore in cash and diamond-studded jewellery and bullion valued over ₹23.25 crore. Such findings suggest systemic issues within the construction and municipal governance frameworks.

A senior official from the VVMC’s town planning department has come under scrutiny for holding significant unaccounted assets, indicating potential complicity in the alleged scam. As the investigation progresses, the ED remains focused on tracing the money trail and uncovering further beneficiaries of this expansive fraudulent operation.

Future Proceedings

The ongoing investigation by the ED continues to draw attention to the troubling dynamics of land ownership and municipal governance in Vasai-Virar. With assets frozen and further inquiries into implicated individuals underway, this case underscores the need for greater transparency and accountability in local government operations.

Deeper Dive: News & Info About This Topic

Additional Resources

• Daily Jagran
• Wikipedia: Real estate scams
• Times of India
• Google Search: Vasai Virar land scam
• Indian Express
• Google Scholar: land scam India
• Hindustan Times
• Encyclopedia Britannica: real estate fraud
• The Hindu
• Google News: land scam investigation