Mumbai: A year after his arrest in a money laundering case, a special court rejected the bail plea of former Deputy Director of Town Planning, Vasai-Virar City Municipal Corporation, Y Shiva Reddy, holding that material collected by the Enforcement Directorate (ED) showed alleged possession of huge tainted assets. “The investigation reveals that the proceeds of crime have been generated as a result of criminal activity relating to a scheduled offence by the accused by procuring a huge amount of cash, gold and diamond-studded jewellery, bullion and other luxurious items. This shows his specific involvement in the commission of offence of money laundering,” the judge said.During searches, the ED claimed it seized Rs 8.23 crore in cash and gold, diamond-studded jewellery, bullion, and valuables worth Rs 23.25 crore from Reddy’s premises. The agency alleged that these assets formed part of the proceeds of crime generated through corruption and illegal permissions.The ED arrested Reddy in Aug 2025 in a money-laundering probe linked to alleged illegal constructions, land grabbing, forged documents and bribery involving builders, developers and municipal officials in the Vasai-Virar region.The judge noted that Reddy was a public servant and that assets allegedly found in Reddy’s possession “were disproportionate to known sources of income”.The ED alleged that Reddy, while serving as Deputy Director of Town Planning, granted illegal permissions, commencement certificates, occupancy certificates and revised development approvals to builders and developers. The agency claimed that illegal gratification was collected through intermediaries and that coded communications and a token-note system were used to move and conceal cash.Additionally, the court also said rejected the bail plea of builder and broker Arun Gupta, who faces money laundering charges. Special public prosecutor for the ED, Kavita Patil, strongly opposed the pleas.In Gupta’s order judge noted that rather than pursuing lawful development, Gupta intentionally grabbed land reserved for a government project and has conspired with other builders and developers for his own benefit by making unauthorized constructions and multi-storied apartments. “It is needless to mention that due to misconduct of the accused, 2500 families were rendered homeless, losing their harden money as all the 41 structures were declared illegal by the…high court and were demolished. The accused was knowing that one or the other day, the buildings will be demolished, even then he has made the construction and has earned the money in connivancely for his own benefit,” the judge said.The court also rejected the argument of long incarceration, noting that Reddy had earlier challenged the arrest before higher courts and that the delay could not be attributed to the prosecution. “It is to be stated that the accused has reached the age of superannuation, as stated by the advocate, it means that now his responsibility in the office is over and hence he is at flight risk,” the judge said in Reddy’s order. “It is to be stated that the legislation of PML Act is to combat the menace of money laundering wherein huge hard earned money of the public is also involved. Such offences affect the financial sovereignty and integrity of the country,” the judge added.
