Mumbai, September 2, 2026: The special PMLA court has rejected the bail plea of Y. Shiva Reddy, former deputy director in the town planning department, and builder Arun Gupta, booked for money laundering in connection with illegal constructions in Vasai-Virar.
The Enforcement Directorate had in August last year arrested IAS officer and former commissioner of Vasai-Virar City Municipal Corporation (VVCMC) Anil Pawar and Reddy, along with Sitaram Gupta, former corporator of Bahujan Vikas Aghadi (BVA) party in the Vasai-Virar region, and his brother Arun.
They were arrested by the ED over money laundering allegations in connection with their alleged role in the construction of 41 illegal buildings in Vasai-Virar.
Accused Deny Role In Illegal Constructions
Reddy, while seeking bail, had pleaded that the act of demolition of illegal buildings and structures is falsely attributed to him. He has no role in illegal constructions of 41 buildings. There is no nexus of the property seized and the crime registered.
While Arun, in his plea, claimed that no predicate and scheduled offence is made out against him and there are no basic ingredients to show money laundering on his part. There is no evidence to connect him with the present offence or proceeds of crime.
The pleas were opposed by ED's public prosecutor Kavita Patil, contending that there is enough evidence against them. She argued that during the investigation, a huge amount of cash, bullion and jewellery to the tune of Rs 32 crore was recovered from the possession of Reddy, which is disproportionate to the income from his known sources.
For Arun, it was argued that he was instrumental in making illegal constructions of 41 buildings and other structures with the help of other builders and developers, and the same were sold to the public at large by accepting large amounts of money.
Court Cites Disproportionate Assets
The court, after hearing both the applications, rejected them. While rejecting the bail plea of Reddy, the special PMLA judge, SV Sahare, said, "the accused is a public servant and the assets found in his possession were disproportionate to the known source of his income. He was unable to give plausible explanation for the same and hence the offence under prevention of corruption Act were invoked against him."
"The investigation reveal that the proceeds of crime have been generated as a result of criminal activity relating to scheduled offence by the accused by procuring huge amount of cash, gold and diamond studded shows his specific jewellery, bullions and other luxurious items. This involvement in commission of offence of money laundering," the court further said, adding that at this stage the court is not required to evaluate the evidence produced by the agency against the accused.
Besides, the court said, "there is enough material on record to show that there is possibility that, the Accused may abscond, if he is released on bail at this stage. It is to be stated that the accused has reached the age of superannuation, as stated by the Advocate, it means that now his responsibility in the office is over and hence he is at flight risk."
Court Rejects Gupta's Bail Plea
Meanwhile, while rejecting the bail application of Gupta, the court relied upon his statement before the agency and said that he had purchased 30 acres of land and divided it further into 70-80 plots and sold them.
The court noted that, "the accused with other builders has gathered huge amount towards proceeds of crime by illegal grabbing of government and private land, subsequently making illegal construction over it or residential or commercial units. The accused rather than pursuing lawful development has knowing and intentionally grabbed the land which was reserved for government project and thus has conspired with other builders and developers for his own benefit by making unauthorized constructions and multi-storied apartments."
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"It is needless to mention that due to misconduct of the accused. 2500 families were rendered homeless, losing their harden money as all the 41 structures were declared illegal by the Hon'ble High Court and were demolished. The accused was knowing that one or the other day, the buildings will be demolished, even then he has made the construction and has earned the money in connivancely for his own benefit," the court said while rejecting his bail plea.
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