Palghar: In a major development, the Bombay High Court has ordered the release of former Vasai-Virar City Municipal Corporation (VVCMC) commissioner Anil Pawar, declaring his arrest by the Enforcement Directorate (ED) as “illegal.” Pawar, a senior IAS officer, was taken into custody by the ED in August this year for allegedly accepting bribes amounting to ₹169 crore during his tenure as the civic chief from January 2022 to July 2025.
“We have formed an opinion that as on August 13, 2025, the arresting officer has no such material as required under section 19 of the Prevention of Money Laundering Act (reason to believe that person is guilty of offence)," the HC said.
"We mean that there is no tangible material and the whole case of ED is based on statement of certain architects and developers," the bench said.
According to the ED’s charge sheet, filed before a special PMLA court in Mumbai on Wednesday, Pawar is accused of collecting huge sums in kickbacks for clearing building plans and overlooking unauthorised constructions within the VVCMC limits. The probe agency has named 18 individuals and entities in its complaint, including VVCMC’s former town planner Y. Shiva Reddy and builders Sitaram and Arun Gupta, who have also been arrested in connection with the case.
Alleged System of Bribe Collection
The ED’s investigation suggests that Pawar systematically collected bribes worth over ₹169 crore—₹16.59 crore allegedly for ignoring already constructed illegal structures, and ₹152.59 crore for granting permissions for new ones. The agency has pegged the total amount of laundered funds at ₹300.92 crore.
The money laundering case stems from several FIRs related to the construction of 41 illegal residential and commercial buildings on both government and private land under the Vasai-Virar civic limits. These buildings have since been demolished following court orders.
Wife Named as Front in Laundering Network
The ED has also alleged that Pawar used his wife Bharti Pawar as a front to route illicit funds. Despite describing herself as a homemaker, Bharti was listed as a director, partner, shareholder or proprietor in multiple firms, including M/s Shrutika Enterprises (Thane), M/s BSR Realty (Nashik), M/s Janardan Agro (Satara), M/s Bharati Anil Pawar (proprietorship), M/s Anmol Builders, and M/s Triquetra Constrotech LLP.
According to the Enforcement Directorate (ED), former civic chief Anil Pawar channelled his illicit earnings into warehousing and land development ventures to disguise the origin of the funds. The agency claimed that Pawar made these “investments” through family members — his wife Bharti, daughters Shrutika and Revati, and close relatives such as Amol Patil (Bharti’s cousin) and Janardan Pawar (his nephew).
The ED identified the Antonov Warehousing Parks project in Bhiwandi and M/s Dhwaja Warehouses Pvt Ltd as key fronts used by Pawar to convert bribe money into legitimate equity holdings.
“Pawar effectively transformed the bribes into legally-titled family assets, masking their illicit origins and enjoying the proceeds as untainted wealth,” the agency stated in its findings.
Cash, Jewellery and Property Seizures
Before the arrests, the ED recovered ₹8.6 crore in cash and ₹23.2 crore worth of jewellery from the residence of town planner Shiva Reddy. Investigators also seized ₹1.3 crore in cash and several property-related documents from a relative of Pawar. The probe further uncovered that another relative in Dadar had received ₹3.4 crore in bribes, allegedly moved through the angadia network.
Court’s Observation and Release
While the ED continues to pursue its money laundering investigation, the Bombay High Court on Wednesday ruled that Pawar’s arrest was not in accordance with the law, ordering his immediate release.
The decision marks a significant twist in one of Maharashtra’s largest alleged civic corruption scandals in recent years, even as the ED maintains that the case involves a systematic laundering mechanism operated through multiple front companies and family members.
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