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

Mumbai: The Enforcement Directorate (ED) has seized over Rs 12.1 crore from bank balances, demat accounts, mutual funds, and fixed deposits, along with Rs 25 lakh in cash, during the second phase of searches in the Vasai-Virar illegal construction case.

The agency also recovered several incriminating documents, now under forensic scrutiny, officials said.

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.

The action targeted architects, liaison agents, and insiders from the Vasai Virar Municipal Corporation (VVMC) who are suspected of facilitating large-scale land grabbing and unauthorized construction of 41 buildings on 60 acres of civic land reserved for sewage treatment and dumping grounds.

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 Rs31.85 crore.

As the investigation progresses, the ED is examining how certain architects may have misused their professional responsibilities to facilitate the scam. Officials said architects are typically tasked with ensuring that building plans comply with municipal norms, preparing and submitting key documents including structural reports and NOCs and coordinating with civic departments to obtain necessary approvals like the Intimation of Disapproval (IOD), Commencement Certificate (CC), and Occupation Certificate (OC).

In the current case, investigators suspect that certain architects exploited this access to manipulate land-use approvals, bypass Development Control Regulations (DCR), and secure illegal permissions in exchange for bribes. This was allegedly done in collaboration with liaison agents and VVMC officials.

ED officials 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 to have manipulated land use classifications, forged construction approvals, and executed fake sale agreements for illegally built flats.

Officials said architects and liaison agents were responsible for preparing building plans, calculating charges based on built-up area, submitting required documents, and advising developers on statutory payments such as scrutiny fees, development charges, and premium FSI. However, several of these charges were allegedly underreported or evaded.

Vasai-Virar Land Scam: ED Conducts Second Round Of Searches Targeting Architects, VVMC Insiders And Middlemen

The ED suspects that senior civic officials accepted substantial bribes to overlook blatant violations, enabling large-scale unauthorized construction to go unchecked for years.

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