Mumbai: The Bombay High Court, while terming the arrest of former Vasai-Virar Municipal Corporation (VVMC) chief Anilkumar Pawar as “illegal”, has held that there is no prima facie case against him and that the Directorate of Enforcement’s (ED) stand is “speculative and based on hazy facts”.
Lack of Tangible Evidence
A bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad, on Wednesday, set aside Pawar’s arrest, observing that the ED lacked “tangible material” to justify his detention.
The court directed Pawar’s immediate release and rejected the ED’s plea seeking a stay on the order. The detailed 22-page judgment was made available on Thursday.
No Material Under PMLA
Pawar was arrested on August 13 in a money laundering case linked to alleged illegal constructions across Vasai-Virar. The court said that as on the date of arrest, the agency’s officer had “no material in his possession” to establish that Pawar had committed an offence under the Prevention of Money Laundering Act (PMLA). “When we say that the arresting officer had no such material, we mean that no tangible material was available,” the court said.
Referring to Supreme Court rulings, the bench reiterated that the safeguards under Section 19 of the PMLA—requiring an arresting officer to record “reasons to believe” that a person is guilty—are “stringent and of higher standard”. These safeguards, the court noted, exist to ensure that officers act responsibly and not arbitrarily.
Reliance on Co-Accused Statement
The HC pointed out that the ED’s case was built largely on the statement of co-accused and suspended former deputy director of town planning YS Reddy, who claimed that a “codeword system” was used for collection of commission money, and that huge sums were received by Pawar.
However, the court said: “No recovery was effected from the premises of the petitioner (Pawar) or from his possession or in the possession of his family members.” It also noted that no incriminating material such as WhatsApp chats, diaries, or messages were recovered from Pawar’s phone or home.
Alleged Illegal Buildings Questioned
The bench also rejected the ED’s claim that Pawar permitted 41 illegal buildings, observing that the alleged constructions occurred between 2008 and 2021—before he became commissioner in January 2022.
“The allegations that the petitioner turned a blind eye to illegal constructions are without any description of the projects and without any details of the development plans,” the court said.
The ED, which has so far arrested four people in the case, alleged that Pawar and other civic officials took bribes to overlook rampant illegal constructions spread over nearly 60 acres. It claimed Pawar was the “chief controller” of the unauthorised constructions.
No Evidence of Proceeds of Crime
However, the HC found no evidence of any proceeds of crime linked to Pawar. A search of his residence in July 2025 yielded no unaccounted cash, documents, or electronic devices, the order noted.
Prima-Facie Opinion Only
“The arrest of the petitioner on 13th August 2025 is held illegal. All remand orders stand quashed,” the court said. Pawar was ordered to be released upon filing an undertaking not to tamper with evidence or influence witnesses.
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The court has clarified that the “findings” recorded in this order are “prima-facie opinion” only for the purpose of deciding legality of Pawar’s arrest on August 13. Such findings shall not affect the case of the ED when the Prosecution Complaint is examined by the Court in any further proceedings against the petitioner, it added.
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