ED embarrassed as Bombay HC declares Vasai-Virar civic chief's arrest illegal

The Bombay High Court has ruled that the arrest of former Vasai-Virar civic chief Anil Pawar by the ED (Enforcement Directorate) was 'illegal', stating that there was no 'prima facie' case justifying his detention, a decision that has placed the federal agency in an embarrassing position.

Pawar was arrested on 13 August in connection with a money-laundering investigation. A bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad on Wednesday held that the arrest lacked "tangible material", rendering it unlawful. The court said Pawar’s plea challenging his arrest had merit and ordered his immediate release from prison.

In its 22-page judgement, made public on Thursday, the high court stated it found "no prima facie basis" for Pawar’s arrest and criticised the agency’s position, saying "the stand taken by the ED is speculative and based on hazy facts".

According to the court, the ED built its case largely on the testimony of co-accused Y.S. Reddy, who alleged that a codeword system was devised to collect commission money and that Pawar received substantial sums of illicit funds.

“However, no recovery was effected from the premises of the petitioner (Pawar) or from his possession or in the possession of his family members,” the order stated.

The bench rejected the ED’s contention that Pawar authorised the construction of 41 illegal buildings, noting that he could not be held responsible for alleged offences that occurred between 2008 and 2021, before his tenure as commissioner of the Vasai Virar City Municipal Corporation in Palghar district.

The judges further pointed out that the ED’s claim that Pawar ignored or failed to act against illegal constructions lacked specific details of the projects or their approved plans.

Pawar’s counsel, advocate Ujjwalkumar Chavhan, welcomed the ruling. “It was Pawar who ordered and executed the demolition of the 41 illegal constructions. None of the former commissioners under whose tenure these constructions remained have been investigated,” he told PTI.

Chavhan said the judgement represented “a paradigm shift and a course correction in the interpretation of the ED’s powers”, adding that it set a vital precedent for future probes.

The high court also observed that when Pawar was arrested on 13 August, the arresting officer did not possess materials required under Section 19 of the Prevention of Money Laundering Act, which demands “reason to believe that the person is guilty of the offence”.

Pawar had earlier approached the high court challenging both his arrest and subsequent judicial remand orders issued by a special court, which have now been quashed.

The case involves alleged collusion between officials and developers leading to the construction of 41 unauthorised buildings in Vasai and Virar. The ED accused Pawar of playing a central role in a money laundering operation worth hundreds of crores, citing builder depositions, WhatsApp communications, and financial trails as evidence.

The agency said multiple civic officials, including Pawar, accepted large bribes to ignore illegal developments across nearly 60 acres of land.

So far, the ED has arrested four people — Pawar, VVCMC town planner Reddy, and builders Sitaram Gupta and Arun Gupta — all of whom remain in judicial custody.

The investigation concerns unauthorised residential and commercial structures erected on government and private land earmarked for sewage treatment and dumping facilities, according to the sanctioned city development plan.

In its chargesheet, the ED alleged that between January 2022 and July 2025, while serving as VVCMC commissioner, Pawar “acted as chief controller and key person of illegal unauthorised constructions” and “actively facilitated and expanded the very network he was mandated to dismantle”.

With PTI inputs