Bombay HC Declares Arrest Of Ex-Vasai-Virar Commissioner Anilkumar Pawar Illegal In Money Laundering Case

In a severe setback to the Enforcement Directorate (ED), the Bombay High Court on Wednesday declared the arrest of ex-Vasai-Virar Municipal Commissioner (VVMC) Anilkumar Pawar as “illegal”, holding that the agency lacked “tangible material” to justify his detention. The court directed Pawar’s immediate release and rejected the ED’s plea to stay its order.

Urvi Mahajani Updated: Wednesday, October 15, 2025, 11:15 PM IST
Ex-Vasai-Virar Municipal Commissioner Anilkumar Pawar released after Bombay HC declares ED arrest illegal | File Photo

Ex-Vasai-Virar Municipal Commissioner Anilkumar Pawar released after Bombay HC declares ED arrest illegal | File Photo

Mumbai: In a severe setback to the Enforcement Directorate (ED), the Bombay High Court on Wednesday declared the arrest of ex-Vasai-Virar Municipal Commissioner (VVMC) Anilkumar Pawar as “illegal”, holding that the agency lacked “tangible material” to justify his detention. The court directed Pawar’s immediate release and rejected the ED’s plea to stay its order.

A bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad quashed the arrest and remand orders passed by the designated special PMLA court on August 13 and 20, terming them unsustainable.

Court Observes Lack of Prima Facie Evidence

“When we say the arresting officer had no such material, we mean there was no tangible material in his possession,” the bench observed. “We see no prima facie case made out against the petitioner.”

The bench remarked that under Section 19 of the Prevention of Money Laundering Act (PMLA), an arrest must be based on “reason to believe” supported by concrete evidence available at the time of arrest. “You can’t show new material which you didn’t submit at the time of arrest as grounds of arrest and reason to believe,” the court said during the hearing.

ED Case Relied on Insufficient Material

The court noted that the ED’s case rested largely on the statements of YS Reddy, a suspended former deputy director of town planning, and several architects, builders, and developers, along with certain WhatsApp chats between Reddy and Pawar.

“As we glance through such WhatsApp chats, copies of which were produced in court by the Additional Solicitor General, it is seen that the conversations between Pawar and Reddy began only on January 13, 2022 — the day the petitioner took charge as commissioner,” the court observed.

The judges concluded that such material did not constitute sufficient grounds to form a belief of guilt under the PMLA.

Background of the Case

Pawar, an IAS officer, was arrested by the ED on August 13 in connection with an alleged money-laundering racket linked to unauthorised construction approvals in Vasai-Virar. He was remanded to ED custody the next day and later to judicial custody.

Challenging his arrest and remand, his counsel, senior advocate Rajiv Shakdher, argued that the alleged offences pertained to 41 unauthorised constructions between 2008 and 2021, while he had assumed office only in January 2022. His counsel contended that there was no money trail connecting him to the alleged proceeds of crime and that the arrest memo failed to meet statutory requirements under Section 19 of the PMLA.

ED Maintains Pawar Was Central to Laundering Racket

The ED maintained that Pawar was a “central figure” in a laundering racket worth Rs 300.92 crore, of which Rs 169 crore was linked to him. The agency cited builder testimonies, cash trail analysis, and WhatsApp exchanges to support its case.

ASG Anil Singh argued that it was a “well planned conspiracy”, where a responsible IAS officer, who is a municipal officer, is involved in corruption. “Before arrest, we collected information and material against him,” Singh asserted.

Dismissing the ED’s request to stay the order, the bench observed that “considering findings recorded”, it was not inclined to stay the order.

“The petition succeeds to the extent that the arrest of the petitioner on August 13, 2025, is held illegal. The petitioner shall be released on production of a copy of this order,” the court concluded.

Also Watch:

The ED recently filed a chargesheet on October 10 against Pawar, his wife Bharti, Reddy, former corporator Sitaram Gupta, and others including architects, developers, and brokers alleged to have participated in a bribery nexus.

The probe pertains to alleged illegal approvals for construction projects spread over nearly 60 acres, with bribes allegedly collected at Rs 20–25 per sq ft.

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Published on: Thursday, October 16, 2025, 03:00 AM IST

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