ED Raids Telugu Official Near Mumbai Suburb, Seizes Over Rs 30 Crore Worth Cash, Gold
Y.S. Reddy linked to scam over illegal buildings in Vasai-Virar
Hyderabad: In a two-day search, the Enforcement Directorate’s (ED) Mumbai Zonal officials seized Rs 8 crore and Rs 23 crore worth of gold studded with diamonds from the residences of Y.S. Reddy, deputy director of the planning department of Vasai Virar Municipal Corporation (VVMC).
Mumbai ED officials conducted searches in Hyderabad, Mumbai, and 13 other places related to Y.S. Reddy. The agency officials initiated the investigation based on multiple FIRs registered by the Mira Bhayandar Police Commissionerate against builders, local henchmen, and others.
The case pertained to “illegal construction of residential-cum-commercial buildings on government and private land” under the jurisdiction of “Vasai Virar Municipal Corporation since 2009. Over a period, 41 illegal buildings were constructed on the land which was reserved for “Sewage Treatment Plant” and “Dumping Ground” as per the approved development plan of Vasai Virar City.
The accused have deceived the people by constructing illegal buildings on such STP land and subsequently selling it to them (the general public) by fabricating approval documents. Even with prior knowledge that these buildings were unauthorised, the developers misled the people by selling rooms in these buildings, committing a serious fraud.
The Bombay High Court issued an order on July 8, 2024, directing the demolition of all 41 buildings. Later, a Special Leave Petition (SLP) was filed before the Supreme Court by the families residing in 41 illegal buildings, which was dismissed. The demolition of all 41 buildings was completed by VVMC on February 20, 2025.
The Enforcement Directorate, Mumbai officials have probed the case under PMLA, and it was revealed that the large-scale illegal construction in the area has been going on since 2009. It has been found that the key perpetrators of the scam are Sitaram Gupta, Arun Gupta and others.
During the investigation, it was found that these unauthorised and illegal buildings were constructed with the close connivance of various VVMC officials.