ED Cracks Down on VVMC Scam: ₹13 Crore Frozen, Officials Implicated in Widespread Fraud

Directorate of Enforcement (ED), Mumbai Zonal Office has conducted search operations at 16
different locations across Mumbai under the provisions of the Prevention of Money Laundering Act (PMLA),
2002 on 01.07.2025 in the case of Jayesh Mehta and others (VVMC Scam Case). The search operation led
to freezing of Rs. 12.71 Crore (approx.) in bank balances/ Fixed Deposits/Mutual Funds and Seizure of
cash amounting to Rs. 26 Lakh apart from large number of incriminating documents/devices.
ED initiated investigation on the basis of multiple FIR registered by Mira Bhayandar Police
Commissionerate against builders, local henchmen and others. The case pertains to “illegal construction of
residential cum commercial buildings on government and private land” under jurisdiction of “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. The accused builders and developers have deceived the public at large by
constructing illegal buildings on such land and subsequently selling it to general public by fabricating approval
documents. Even with prior knowledge that these buildings were unauthorized and would eventually be
demolished, the developers misled the people by selling rooms in these buildings thereby committing serious
fraud.
The Hon’ble Bombay HC vide its order dated 08.07.2024 ordered the demolition of all 41 buildings.
Thereafter, an SLP was filed before the Hon’ble Supreme Court by the families residing in 41 illegal buildings
which was dismissed. The demolition of all 41 buildings was completed by VVMC on 20.02.2025.
ED investigation revealed that a large cartel of Architects, CAs, Liasoners and VVCMC
officials/officers are operating in collusion with each other in the Jurisdiction of VVCMC. This cartel is
responsible for large scale illegal construction in the Jurisdiction of VVCMC.
During the course of search operation, large number of incriminating digital devices have been seized
which reveal the involvement of VVCMC officials in perpetration of this large scale illegal construction scam.
The digital devices also revealed the close nexus of VVCMC officials/officers with the
Architects/CA’s/Liasoners and the extent of large scale corruption and black money flowing in the VVCMC to
get the approval for construction of buildings.
Earlier search operations in the case led to seizure of Rs. 8.68 Crore (approx.) cash and Rs. 23.25
Crore worth of Diamond studded Jewellery and Bullion.

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