The Enforcement Directorate (ED) conducted searches at 16 locations in Mumbai in connection with the VVMC illegal construction scam. Assets worth Rs 12.71 crore were frozen, and cash, documents, and digital evidence were seized
Vehicles of ED officials outside the premises. Pic/Hanif Patel
The Enforcement Directorate (ED), Mumbai Zonal Office, recently conducted search operations at 16 different locations across Mumbai. The search was conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
It has been reported that the search was conducted on 01.07.2025 at the premises and offices of Jayesh Mehta and others (VVMC Scam Case).
The search operation by the Enforcement Directorate led to the freezing of assets worth Rs. 12.71 Crore (approx.) in the form of bank accounts/fixed deposits/mutual funds and cash amounting to Rs. 26 Lakh. Apart from the assets, ED also seized a large number of incriminating documents/devices that can further help the agencies to investigate the case.
ED initiated an investigation on the basis of multiple FIRs registered by the Mira Bhayandar Police Commissionerate against builders, local henchmen and others.
As per the sources, the case pertains to the “illegal construction of residential cum commercial buildings on government and private land” under the jurisdiction of the “Vasai Virar Municipal Corporation (VVMC)” since 2009.
Over a period of time, 41 illegal buildings were constructed on the land reserved for “Sewage Treatment Plant” and “Dumping Ground” as per the approved development plan of Vasai Virar City.
However, the accused builders and the developers have deceived the public at large by constructing illegal buildings on such land and subsequently selling it to the general public by fabricating documents.
Even with prior knowledge that these buildings were unauthorised and would eventually be demolished, the developers misled the people by selling rooms in these buildings, committing serious offences under various acts of PMLA and public corruption.
The scam has exposed a nexus between VVCMC officials, builders, chartered accountants, and other officials allegedly operating as a cartel to facilitate and profit from unauthorised constructions.
The case traces back to a ruling by the Hon’ble Bombay High Court dated July 8, 2024, which ordered the demolition of 41 illegally constructed buildings in the jurisdiction of VVCMC. However, the residents of these buildings had approached the Hon’ble Supreme Court through a Special Leave Petition (SLP), but their plea was dismissed. Subsequently, VVCMC completed the demolition process on February 20, 2025.
During the course of the search operation conducted by the ED, a large number of incriminating digital devices have been seized which reveal the involvement of VVCMC officials in the perpetration of this large-scale illegal construction scam.
Earlier search operations in the case led to the seizure of Rs. 8.68 Crore (approx.) cash and Rs. 23.25 Crore worth of diamond-studded jewellery and bullion. As per the officials and reports, further investigation is in progress.
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