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The Bombay High Court recently ruled that the arrest of Anil Pawar, former commissioner of Vasai-Virar City Municipal Corporation (VVCMC), in a money laundering case was illegal due to insufficient tangible evidence. Pawar had been accused of colluding with builders, resulting in 41 unauthorised buildings across Vasai and Virar, allegedly involving bribes worth hundreds of crores. The court quashed the remand orders and directed his immediate release, highlighting that ED's case relied heavily on architect and developer statements without concrete proof. The ruling emphasizes procedural adherence in law enforcement.
The Bombay High Court has declared the Enforcement Directorate's (ED) arrest of Anil Pawar, former commissioner of Vasai-Virar City Municipal Corporation (VVCMC), illegal and ordered his immediate release. The bench, comprising Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad, observed that the ED lacked the "tangible material" required under Section 19 of the Prevention of Money Laundering Act to justify the arrest. Pawar had been detained by the ED in August 2025 in connection with allegations of money laundering. Advertisement
The case revolved around claims that Pawar colluded with builders and developers to facilitate the construction of 41 unauthorised buildings across Vasai and Virar. These constructions were reportedly carried out on both government and private land, including areas reserved for a Sewage Treatment Plant and dumping grounds, in violation of the approved development plan. The ED alleged that officials, including Pawar, accepted substantial bribes to overlook illegal construction activity spanning nearly 60 acres.
Pawar's legal team emphasized that the unauthorised buildings were constructed between 2008 and 2021, while Pawar assumed office only in January 2022. Despite this, the ED maintained that Pawar played a central role in a laundering network worth hundreds of crores, presenting builder testimonies, WhatsApp chats, and cash flow analyses to support their case. Prior to the High Court's ruling, four individuals had been arrested in the probe, including Pawar, VVCMC town planner Y Shiva Reddy, and two builders, Sitaram Gupta and Arun Gupta, all of whom were in judicial custody.
The High Court noted that the ED's claims were largely based on statements from architects and developers without substantial material to substantiate the arrest. Consequently, the court quashed the remand orders issued by the special court and rejected a plea by the ED to stay the release. Pawar was directed to be freed immediately.
The ED had previously argued that Pawar, during his tenure as VVCMC commissioner from January 2022 to July 2025, acted as a key controller of unauthorised construction activity, allegedly expanding a network that he was legally obliged to regulate. The agency claimed that developers deceived buyers by selling units in these illegal buildings, knowing they were unauthorised and earmarked for demolition, effectively committing fraud.
Source PTI
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