New Delhi, Jul 3 (PTI) A "large cartel" of architects, chartered accountants, and officials of the Vasai Virar City Municipal Corporation in Maharashtra colluded for large-scale illegal construction on land meant for sewage treatment plants, and dumping ground was sold fraudulently to the public, the Enforcement Directorate has said.

The federal probe agency said in a statement that fresh searches were conducted at 16 locations on July 1 in connection with the money laundering probe into the construction of 41 illegal buildings in Vasai Virar area.

During the raids, bank deposits and mutual funds worth Rs 12.71 crore were frozen and cash of Rs 26 lakh was seized apart from "incriminating" documents and devices, it said.

The money laundering case stems from an FIR registered by the Mira Bhayandar Police Commissionerate against some builders, local henchmen and others.

The case, according to the ED, pertains to illegal construction of residential-cum-commercial buildings on government and private land under the jurisdiction of Vasai Virar City Municipal Corporation (VVCMC) since 2009.

Over a period of time, 41 illegal buildings were constructed on the land reserved for sewage treatment plants and dumping ground as per the approved development plan of Vasai Virar City, the agency said.

"The accused builders and developers deceived the public at large by constructing illegal buildings on such land and subsequently sold it to the general public by fabricating approval documents.

"Even with prior knowledge that these buildings were unauthorised and would eventually be demolished, the developers misled the people by selling rooms in these buildings thereby committing serious fraud," the ED alleged.

The Bombay High Court issued an order in July 2024 ordering the demolition of all 41 buildings. The residents of these residential units subsequently filed a special leave petition (SLP) before the Supreme Court but this was dismissed and VVCMC demolished these structures on February 20.

Probe found, the ED said, that a "large cartel of architects, CAs, liaisoners and VVCMC officials are operating in collusion with each other." "This cartel is responsible for large-scale illegal construction in the jurisdiction of VVCMC," it said.

The searches led to the recovery of "incriminating" digital devices which show the "involvement" of VVCMC officials in perpetrating this illegal construction scam, it said.

The digital devices also show the "close" nexus of VVCMC officials/officers with the architects, CAs and liaisoners and the extent of "large-scale" corruption and black money flowing in the VVCMC to get the approval for construction of buildings, the ED said.

The first round of searches in this case were conducted by the ED in May. PTI NES KVK KVK

Illegal construction cartel exposed, triggering a money laundering probe and asset seizures tied to fraudulent approvals. A federal probe alleges a cartel of architects, chartered accountants, liaisoners and municipal officials colluded to construct and fraudulently sell unauthorised buildings on land reserved for sewage treatment and dumping. The Enforcement Directorate reports searches, asset seizures and frozen deposits, recovery of digital evidence showing official involvement and document fabrication, and pursues the matter as a money laundering investigation originating from an FIR about large-scale illegal construction; demolition orders for the 41 buildings were subsequently enforced.