Mumbai: The Enforcement Directorate (ED) seized Rs 8.6 crore in unaccounted cash and Rs 23.2 crore worth of diamond-studded jewellery and bullion from deputy director of town planning in the Vasai-Virar Municipal Corporation (VVMC) Y S Reddy‘s premises in Hyderabad on Wednesday. The ED also found Rs 45 lakh at former BVA corporator Sitaram Gupta’s premises.The ED case pertains to the illegal construction of 41 residential and commercial buildings on govt and private land under the jurisdiction of the VVMC since 2009. The land, around 60 acres, was meant for sewage treatment and dumping facilities. The buildings were demolished some months ago.In 2016, the Anti-Corruption Bureau (ACB) from Thane had arrested Reddy for offering a Rs 25 lakh bribe to Shiv Sena corporator Dhananjay Gawade to not expose the nexus between the construction mafia and VVMC officials. The ACB had recovered valuables worth Rs 3 crore. Reddy later resumed his position after being cleared of charges.On Wednesday, the ED also searched the premises of Vijay Tambat, alias Vijay Salvi, said to be linked to the Chhota Rajan gang, and BJP’s Nalasopara office-bearer Vivek Tiwari. Reddy was on leave in Hyderabad, his hometown, when the ED raided his premises. During the search, Reddy complained of health complications, after which he was rushed to hospital. The ED believes more VVMC officials are involved in the case. The investigation showed that “the key perpetrators of the scam were Sitaram Gupta, Arun Gupta, and the illegal buildings were constructed with close connivance of various VVMC officials”. The ED’s money laundering investigation stems from multiple FIRs registered by the Mira-Bhayandar Vasai-Virar Police Commissionerate since 2009. These cases involve illegal construction on govt and private land under VVMC jurisdiction.The ED said, “The accused builders and developers deceived the general public at large by constructing illegal buildings on such land and subsequently selling it to them (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 Bombay high court ordered the demolition of all 41 illegal buildings last year. The resident families challenged this in the Supreme Court, but their appeal was dismissed.