The Bombay High Court on Wednesday (October 15, 2025) declared the arrest of Anil Pawar, former Commissioner of the Vasai-Virar City Municipal Corporation (VVCMC), by the Enforcement Directorate (ED) as illegal, ordering his immediate release. The court held that the agency failed to produce the requisite material under Section 19 of the Prevention of Money Laundering Act (PMLA) to justify the arrest.

A Division Bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad observed that the ED's case relied primarily on statements from developers and architects, WhatsApp chats, and financial trails, but lacked tangible evidence.

"We have formed an opinion that as on August 13, 2025, the arresting officer has no such material as required under section 19 of the Prevention of Money Laundering Act (reason to believe that person is guilty of offence). We mean that there is no tangible material and the whole case of ED is based on statement of certain architects and developers," the court observed.

The court also quashed the remand orders issued by the special PMLA court and rejected the ED's plea for a stay on the release.

Mr. Pawar was arrested on August 13, 2025, in connection with a money laundering probe linked to 41 unauthorised constructions across Vasai and Virar. These buildings, erected between 2008 and 2021 on land reserved for public infrastructure, were ordered to be demolished by the High Court in July 2024. The demolition, completed by February 2025, displaced over 2,000 families. A Special Leave Petition filed by affected residents was dismissed by the Supreme Court.

The ED alleged that Mr. Pawar, who served as VVCMC chief from January 2022 to July 2025, played a central role in facilitating illegal constructions by accepting bribes of ₹150 per sq ft, with ₹50 allegedly routed directly to him. The agency claimed that Mr. Pawar earned ₹169 crore in proceeds of crime and used shell companies to launder funds.

Assets worth ₹71 crore have been attached, including ₹44 crore linked to Mr. Pawar. The chargesheet named his wife, Bharti Pawar, as a key accomplice, along with entities such as Shrutika Enterprises, Janardan Agro Services, Antonov Warehousing Parks Pvt Ltd, and Dhwaja Warehouses Pvt Ltd. Jewellery and cash worth ₹32 crore were seized, and family members were identified as beneficiaries of the laundered assets.

Mr. Pawar's counsel, senior advocate Rajiv Shakdher, argued that the construction predated his tenure and that the arrest was arbitrary.

Including Mr. Pawar, the ED has so far arrested four individuals in total, that includes town planner Y. Shiva Reddy, and builders Sitaram and Arun Gupta, who remain in judicial custody.

Bombay High Court quashes ED arrest of senior IAS officer in money laundering case