In a fresh twist to the Vasai-Virar illegal construction case, the Supreme Court on Monday issued a notice to suspended IAS officer Anil Kumar Pawar after the Enforcement Directorate (ED) challenged the Bombay High Court’s ruling that had declared his arrest “illegal”. The hearing, held before a bench of Justices Vikram Nath and Sandeep Mehta, saw sharp exchanges between the ED and the defence, each accusing the other of distorting facts.
“The bench observed, ‘Let the respondents file their counter affidavit. We will see the material on record before making any comment,’” signalling that the top court is not ready to rush into conclusions just yet.
Background
The controversy dates back to alleged illegal constructions in Vasai-Virar between 2008 and 2010. According to the ED, civic officials and private builders colluded to approve 41 illegal buildings, causing massive revenue loss. An FIR was registered in 2019, and the ED launched a money laundering probe in 2025, pegging the “proceeds of crime” at over ₹300 crore.
Pawar, who was serving as Municipal Commissioner of Vasai-Virar City Municipal Corporation (VVCMC) until his suspension, was arrested by the ED on August 13, 2025. The agency alleged that he turned a blind eye to illegal constructions in exchange for bribes and had close ties with former urban planning officer Y.S. Reddy, from whom ornaments and cash were recovered during raids.
However, Pawar has consistently maintained that he joined VVCMC only in 2022, long after the alleged illegal constructions took place. “How can I be responsible for approvals granted a decade before I joined?” his counsel, Senior Advocate Rajiv Shakdher, told the bench.
Court’s Observations
At the hearing, Additional Solicitor General S.V. Raju, appearing for the ED, insisted that the arrest was backed by strong evidence. “My lords will be shocked if you look at the WhatsApp chats,” Raju argued, adding that money trails and builder statements corroborated the link between Pawar and Reddy.
But the Bombay High Court had earlier disagreed. It held that the ED had “no tangible material” to justify Pawar’s arrest. The Court noted that no recovery was made from him or his family members, and that allegations about him receiving ₹17.75 crore were unsupported by documents or digital proof.
The High Court had also made a strong remark: “The case built on Y.S. Reddy’s statement about a ‘codeword system’ of collecting bribes leads nowhere, as nothing incriminating was found from the petitioner’s possession.”
Moreover, the High Court found that materials collected after Pawar’s arrest could not be used to justify the arrest itself a point that deeply hurt ED’s legal position.
Decision
After hearing both sides, the Supreme Court stopped short of giving any relief but issued notice to Pawar and other respondents. The bench has sought their counter-affidavits before proceeding further.
For now, Pawar remains protected by the Bombay High Court’s earlier order, which had quashed his arrest and refused to stay its operation despite ED’s request.
The case Directorate of Enforcement vs. Anilkumar Khanderao Pawar & Anr (SLP (Crl) No. 16841/2025) will come up again after the respondents file their replies.
As one lawyer quipped outside the courtroom, “This fight is far from over. The Supreme Court’s notice means the real battle begins now.”
Case: Directorate of Enforcement vs. Anilkumar Khanderao Pawar & Anr.
(SLP (Crl) No. 16841/2025)
Court: Supreme Court of India
Bench: Justices Vikram Nath and Sandeep Mehta
Date of Order: October 27, 2025