ED Uncovers Rs 32 Crore Scam in Mumbai-Hyderabad Illegal Construction Racket

Massive Cash & Jewellery Seized in Anti-Money Laundering Raids

The Enforcement Directorate (ED) has seized Rs 32 crore in unaccounted assets during coordinated raids across Hyderabad and Mumbai, exposing a sprawling real estate-money laundering syndicate. The May 14-15 operations under the Prevention of Money Laundering Act (PMLA) targeted illegal constructions in Vasai-Virar and their financial networks.

Key Seizures

• ₹9 crore cash (including ₹8.6 crore from official’s home)
• Diamond jewellery & gold bullion worth ₹23.2 crore
• Incriminating documents linking municipal officials to scam

Modus Operandi: How the Scam Worked

The ED’s investigation, based on Mira Bhayandar Police FIRs, reveals:

✔ Illegal Land Use: 41 high-rises built on 60 acres meant for

• Sewage treatment plants
• Municipal dumping grounds

✔ Document Forgery: Fake approvals created to dupe homebuyers

✔ Shell Companies: Hyderabad-Mumbai networks laundering proceeds

Focus on Key Accused: YS Reddy

The VVMC Deputy Director (Town Planning) faces serious allegations:

• 2016: Arrested by Anti-Corruption Bureau for offering ₹25L bribe
• Current Case: Primary suspect in ₹8.6 crore cash/jewellery haul

“Reddy’s residences yielded the lion’s share of seizures,” ED sources confirmed.

Broader Implications

1. Homebuyers at Risk: 1,000+ flats face demolition
2. Official Collusion: Municipal staff allegedly enabled violations
3. Inter-State Angle: Hyderabad links suggest wider network

What’s Next?

• Forensic audit of seized documents
• Identification of shell company operators
• Possible arrests under PMLA provisions