34 mins ago
PMLA Court Rejects Bail for Former VVCMC Official, Builder
A court in Mumbai refused to release two men on bail.
The men are Y. Shiva Reddy, a former municipal planning official, and builder Arun Gupta.
They are accused of helping create illegal buildings in Vasai-Virar.
Investigators say the case involves money laundering.
The Enforcement Directorate says it found cash, gold and jewellery worth Rs 32 crore from Reddy.
The court said Reddy could not explain these assets using his known income.
It also said Gupta helped divide land into plots and sell illegal buildings.
The court said 41 buildings were demolished, affecting about 2,500 families.
A special PMLA court rejected bail pleas from Y. Shiva Reddy and builder Arun Gupta.
The Enforcement Directorate arrested them over alleged money laundering linked to 41 illegal buildings.
Prosecutors said Rs 32 crore in cash, bullion and jewellery was recovered from Reddy.
The court said Reddy’s assets appeared disproportionate to his known income and cited possible flight risk.
The court alleged Gupta helped develop and sell plots and structures, leaving 2,500 families homeless after demolitions.
- Who
- Former VVCMC official Y. Shiva Reddy and builder Arun Gupta; the Enforcement Directorate investigated them.
- What
- A special PMLA court rejected their bail pleas in a money-laundering case linked to alleged illegal construction.
- Where
- Vasai-Virar, Maharashtra, with proceedings before a special PMLA court in Mumbai.
- When
- The ruling was reported on September 2, 2026; the arrests occurred in August of the previous year.
- Why
- The court cited alleged disproportionate assets, proceeds from illegal construction and possible flight risk.
Accused's Claims
Enforcement Directorate and Court's Findings
Role in illegal construction
Accused's Claims
Reddy denied involvement in constructing 41 buildings and said the demolition activity was falsely attributed to him. Gupta argued there was no evidence connecting him to the alleged offence or proceeds of crime.
Enforcement Directorate and Court's Findings
The Enforcement Directorate alleged Gupta helped create and sell illegal buildings with other developers, while the court said material showed both accused were linked to criminal proceeds.
Source of assets and money
Accused's Claims
Reddy argued that seized property had no connection with the registered crime, while Gupta said no predicate or scheduled offence and no money-laundering ingredients were established.
Enforcement Directorate and Court's Findings
The prosecution cited recovery of Rs 32 crore in cash, bullion and jewellery from Reddy. The court said his assets were disproportionate to known income and that illegal land development generated proceeds of crime.
Release on bail
Accused's Claims
Both accused sought bail and denied the allegations against them.
Enforcement Directorate and Court's Findings
The court rejected both applications, citing the available material and, in Reddy's case, the possibility that he could abscond.
Key facts
- Accused seeking bail
- Y. Shiva Reddy and builder Arun Gupta
- Investigating agency
- Enforcement Directorate
- Construction alleged
- 41 illegal buildings and other structures
- Assets recovered from Reddy
- Cash, bullion and jewellery valued at approximately Rs 32 crore
- Land attributed to Gupta
- 30 acres divided into approximately 70-80 plots
- Families affected
- Approximately 2,500 families were described by the court as rendered homeless
- Court
- Special PMLA court, presided over by Judge S. V. Sahare
Quotes
Judge SV Sahare
Special PMLA court judge who ruled on the bail applications
“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.”
freepressjournal.in
“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.”
freepressjournal.in
Sources
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