Mumbai’s fast-growing suburbs of Vasai and Virar have long promised affordable homes to thousands of families. But behind the rapid construction boom was a dangerous scam that is now coming to light. On Monday, the Enforcement Directorate (ED) carried out fresh raids at 12 locations. This time, the focus was on architects, municipal engineers, and contractors suspected of helping clear illegal buildings for personal gain.
This operation follows earlier raids in May 2025, where officials uncovered a staggering ₹32 crore in cash, gold, and jewellery from homes and offices connected to the scam. The ED believes illegal permissions were granted not only in exchange for cash but also gold ornaments and bullion — a tactic used to avoid detection by financial regulators.
Buildings That Should Never Have Existed
The scam dates back to 2009–2012, when over 41 unauthorised buildings came up in Nalasopara East. Shockingly, these structures were built on land meant for essential public services like sewage treatment plants and dumping grounds. Using forged documents and insider connections, developers sold apartments to unsuspecting homebuyers at attractive prices.
For years, these illegal buildings remained standing. But by late 2024, court-ordered demolitions began after a long legal battle. The demolitions, carried out between December 2024 and February 2025, left over 2,500 families homeless, many of whom had invested their life savings into these homes. The Supreme Court refused to intervene, upholding the Bombay High Court’s decision.
A Network of Corrupt Officials and Builders
As investigations deepened, a disturbing network of corrupt officials, politicians, and builders was exposed. One of the prime accused is Y. S. Reddy, a former Deputy Director of Town Planning. During raids at his Hyderabad home, officials found ₹32 crore in cash, jewellery, and gold bars. Reddy had previously faced bribery charges in 2016 but was reinstated.
Another key figure is Sitaram Gupta, a former corporator. During earlier searches at his Vasai home, authorities discovered ₹45 lakh hidden behind a cupboard panel. Builders like Vijay Tambat (also known as Vijay Salvi), with alleged links to gangster Chhota Rajan, were also named in the case. Investigators say fake structural reports and forged approvals were issued in exchange for hefty bribes.
Fresh Raids, New Names Under Scrutiny
The latest raids are aimed at uncovering how these illegal approvals were facilitated and who else was involved. The ED suspects several architects and engineers signed off on unauthorised building plans, possibly in return for cash or gold payments.
Officials are now tracking property records, bank accounts, and jewellery transactions linked to those raided on Monday. Legal experts believe this case could lead to fresh charges under the Prevention of Money Laundering Act (PMLA) and other criminal laws.
Meanwhile, thousands of displaced families continue to wait for justice. No concrete relief or compensation has been announced so far, leaving many of them homeless and hopeless.