Mumbai, July 3
The Enforcement Directorate (ED) has intensified its probe into the Vasai-Virar Municipal Corporation (VVMC) land scam, conducting fresh search operations at 16 locations across Mumbai on July 1 under the Prevention of Money Laundering Act (PMLA), 2002.
The searches, linked to the case involving Jayesh Mehta and others, resulted in the freezing of assets worth approximately Rs 12.71 crore in bank accounts, fixed deposits, and mutual funds, along with the seizure of Rs 26 lakh in cash and a trove of incriminating documents and digital devices, a statement issued by the agency said on Thursday.
The investigation stems from multiple FIRs (first information reports) registered by the Mira Bhayandar Police Commissionerate against builders, local henchmen, and VVMC officials.
The case revolves around the illegal construction of 41 residential-cum-commercial buildings on government and private land earmarked for sewage treatment and waste disposal, as per the approved development plan of Vasai-Virar city.
These structures, built since 2009, were sold to unsuspecting buyers using forged approval documents, despite the developers being fully aware of their unauthorised status, the statement said.
The Bombay High Court had ordered the demolition of all 41 buildings on July 8, 2024. A Special Leave Petition filed by affected families was dismissed by the Supreme Court, and the demolition was completed by VVMC on February 20, 2025.
The enforcement directorate’s probe has uncovered a deep-rooted nexus involving architects, chartered accountants, liaison agents, and VVMC officials. The seized digital evidence reportedly reveals widespread corruption, including the flow of black money and manipulation of building approvals.
This cartel is believed to have facilitated large-scale illegal construction by exploiting regulatory loopholes and forging documents.
Earlier raids in May had led to the seizure of Rs 8.68 crore in cash and Rs 23.25 crore worth of diamond-studded jewellery and bullion, further exposing the scale of the scam.
Among those under scrutiny is a senior VVMC official from the town planning department, whose premises yielded significant unaccounted assets.
The ED has confirmed that further investigation is underway to trace the money trail and identify additional beneficiaries of the scam.