ED Mumbai seizes Rs. 8.6 crore cash, Rs. 23.2 crore jewellery from VVMC official Y.S. Reddy’s Hyderabad home

Hyderabad: The Directorate of Enforcement (ED), Mumbai Zonal Office, carried out search operations at 13 locations across Mumbai and Hyderabad on May 14 and 15 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The searches led to the seizure of approximately ₹9.04 crore in cash and diamond-studded jewellery and bullion worth ₹23.25 crore. Officials also recovered a large number of incriminating documents.

The ED initiated the investigation based on multiple FIRs registered by the Mira Bhayandar Police Commissionerate. The cases involve builders, local henchmen, and others accused of illegal construction of residential and commercial buildings on government and private land under the jurisdiction of the Vasai Virar Municipal Corporation (VVMC), dating back to 2009.

According to the investigation, 41 illegal buildings were erected on land reserved for a sewage treatment plant and dumping ground, as designated in the approved development plan of Vasai Virar city. Despite knowing the constructions were unauthorized and subject to demolition, the developers allegedly sold units in these buildings by fabricating approval documents, misleading hundreds of homebuyers.

The Bombay High Court, in its order dated July 8, 2024, ordered the demolition of all 41 buildings. A Special Leave Petition filed by affected families was later dismissed by the Supreme Court. The VVMC completed the demolition on February 20, 2025.

The ED identified Sitaram Gupta, Arun Gupta, and others as key figures behind the scam. The investigation also revealed collusion with VVMC officials in facilitating the illegal constructions.

During a search at the residence of Y.S. Reddy, Deputy Director of Town Planning, VVMC, authorities seized ₹8.6 crore in cash and jewellery and bullion worth ₹23.25 crore.

The documents seized are expected to shed further light on the scale of the scam and the involvement of civic officials. The investigation is ongoing.