The Bombay High Court has granted bail to Y. S. Reddy, former town planner of the Vasai-Virar Municipal Corporation, in the Enforcement Directorate’s investigation into alleged financial wrongdoing linked to illegal construction in the municipal limits. Reddy had been in custody since his arrest in August 2025.
The detailed order explaining the court’s decision was not available in the report. The bail decision comes as the ED continues investigating alleged payments and assets connected with the approval or regularisation of illegal construction in Vasai-Virar, a rapidly urbanising region in the Mumbai Metropolitan Region.
The ED conducted searches at 16 locations in July 2025 as part of the investigation. According to the report, the agency seized mutual funds valued at Rs 12.71 crore, cash amounting to Rs 26 lakh and several documents during those searches.
Searches at Reddy’s residences in Vasai and Hyderabad also led to the seizure of Rs 8.6 crore in cash, gold and diamond-studded jewellery valued at Rs 23.25 crore, along with documents, the report said. Reddy was arrested by the ED on 13 August 2025 and had remained in custody since then.
The investigation later widened after information obtained during Reddy’s questioning, according to the ED’s account cited in the report. The agency subsequently arrested Anilkumar Pawar, who had served as Vasai-Virar municipal commissioner and later as administrator. Pawar had been serving as commissioner since January 2022 and was transferred to Thane as chief executive officer of the Slum Rehabilitation Authority. He was taken into custody before assuming the new post.
The ED has claimed that illegal construction was allegedly regularised through a payment arrangement. According to information cited from the investigation, Pawar allegedly fixed a rate of Rs 20 to Rs 25 per square foot for himself from the time of his appointment, while Reddy allegedly fixed a rate of Rs 10 per square foot for himself after taking charge. These are allegations forming part of the ED’s investigation and have not been established as findings against the accused.
The case places municipal planning and enforcement at the centre of the investigation. In Vasai-Virar, decisions involving construction permissions, action against unauthorised development and possible regularisation directly affect land markets, public infrastructure and the capacity of local authorities to manage rapid growth. The next significant development will be the availability of the High Court’s detailed bail order and further steps in the ED investigation.
