Former Vasai-Virar civic commissioner Anil Pawar, arrested in a money laundering case, took “substantial” bribe for not taking action against rampant illegal constructions in the twin-city, the Enforcement Directorate has told a special court, reported news agency PTI.

The IAS officer formed a “gang” involving senior officers and junior engineers, among others, soon after taking charge as the civic commissioner three years ago and charged “huge” commission for granting permissions for construction of buildings, the probe agency alleged on Thursday.

Pawar and three others, including two builders, arrested in the case were sent to ED custody till August 20 by the court.

Besides Pawar, Vasai-Virar City Municipal Corporation (VVCMC) town planner Y Shiva Reddy and two builders, Sitaram Gupta and Arun Gupta, were arrested on Wednesday by the central agency in connection with the case linked to illegal constructions, reported PTI.

They were produced before a special judge handling cases under the Prevention of Money Laundering Act (PMLA), Raju Rote, who remanded them in ED custody till August 20.

The case pertains to illegal construction of residential-cum-commercial buildings on government and private land under jurisdiction of VVCMC.

The probe agency alleged that over a period of time, 41 illegal buildings were constructed on private and government land parcels reserved for a sewage treatment plant and dumping ground as per the approved development plan of Vasai-Virar, a twin-city on Mumbai`s outskirts in Palghar district, reported PTI.

The accused developers (Sitaram and Arun Gupta) looted the general public at large by constructing illegal buildings and subsequently selling them by fabricating approval documents, the ED told the court while seeking their remand.

The developers deceived buyers by selling rooms in these buildings in spite of knowing that the structures were unauthorised and slated for demolition, thereby committing fraud, the anti-money laundering agency added.

The ED sought the custody of the four accused for ten days to investigate and ascertain the role and involvement of other persons in the “huge scam”, reported PTI.

The central agency submitted in the court that they need to identify other beneficiaries of the proceeds of crime, trace the end utilization of the tainted money and identify the properties acquired through it.

Highlighting the alleged role of Pawar in the scam, the ED claimed the senior bureaucrat organized a “gang” with senior officers, junior engineers, architects, CAs and liaisoners after joining as the municipal commissioner in 2022.

He was involved in an organized action plan to acquire the proceeds of crime by committing illegal omission to perform his public duty, the financial crimes probe agency said, reported PTI.

The probe agency stressed that the real estate developers who constructed the 41 illegal buildings, in their statements, have said a “substantial” amount of bribe money was given to senior officers of VVCMC, including Pawar “for keeping a blind eye and taking no action over rampant illegal construction on government/private land”, reported PTI.

The IAS officer, as head of the demolition department of VVCMC, didn`t take action against illegal constructions over government/private land in his jurisdiction.

The ED pointed out that it was only after a Bombay High Court`s order that illegal buildings were demolished.

Pawar would charge huge commission/bribe for granting development permissions required from the VVCMC for construction of buildings, it submitted, reported PTI.

Further, the probe agency stated that the accused builders were the main persons behind illegal acquisition of land and construction of buildings without any approval from statutory authorities.

Realtor Sitaram Gupta layered money through fraudulent documentation and tax regularisation, and projected them as legitimate income. He used dummy owners and shell builder firms, often registered in the names of drivers, rickshaw pullers or employees, to shield them from legal scrutiny, said the ED.

The two arrested builders were ultimate beneficiaries of all customer funds generated from the sale of illegally constructed flats, it told the court.

On the role of town planner Reddy, the ED noted he also took “huge bribe” for not taking action against the illegal constructions.

As part of the probe into the case, the ED conducted raids late last month at multiple locations linked to Pawar, including his bungalow in Virar and residences in Mumbai and Nashik, reported PTI.

The raids were conducted a day after the senior bureaucrat was given a farewell at the VVCMC following his transfer from the post of civic commissioner.

(With inputs from PTI)

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