The ED has seized Rs 9 crore in cash and diamond-studded jewellery and bullion valued at Rs 23.2 crore.

HYDERABAD: In a crackdown on illegal construction and money laundering, the Enforcement Directorate (ED) conducted searches in locations in Hyderabad and Mumbai, leading to the seizure of unaccounted assets worth over Rs 32 crore. The raids were conducted on May 14 and 15 under the Prevention of Money Laundering Act (PMLA), targeting a syndicate linked to unauthorised development in the Vasai-Virar region of Mumbai. The ED has seized Rs 9 crore in cash and diamond-studded jewellery and bullion valued at Rs 23.2 crore. A large portion of the haul, around Rs 8.6 crore in cash and valuables, was recovered from the Hyderabad and Mumbai residences of YS Reddy, Deputy Director of Town Planning, Vasai Virar Municipal Corporation (VVMC). The searches also yielded documents that investigators believe reveal a widespread construction scam in connivance with VVMC officials.

According to the ED, the investigation is based on multiple FIRs filed by the Mira Bhayandar Police Commissionerate. These cases relate to the illegal construction of 41 residential-cum-commercial buildings on nearly 60 acres of government and private land designated for public utilities such as sewage treatment and dumping grounds under the Vasai-Virar Municipal Corporation’s development plan. The accused are alleged to have created forged approval documents and misled homebuyers by selling units in buildings known to be unauthorised and liable for demolition. The ED is also probing shell companies suspected of facilitating money laundering operations between Mumbai and Hyderabad. YS Reddy has been under scrutiny before. In April 2016, the Thane unit of the Anti-Corruption Bureau arrested him while attempting to bribe Shiv Sena corporator Dhananjay Gawde with Rs 25 lakh to withdraw court cases against him.