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

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 unlawful, ordering his speedy launch. The courtroom held that the company failed to provide the requisite materials beneath 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 noticed that the ED’s case relied totally on statements from builders and designers, WhatsApp chats, and monetary trails, however lacked tangible proof.  

“We have fashioned an opinion that as on August 13, 2025, the arresting officer has no such materials as required beneath part 19 of the Prevention of Money Laundering Act (purpose to consider that individual is responsible of offence). We imply that there isn’t a tangible materials and the entire case of ED relies on assertion of sure architects and builders,” the courtroom noticed.  

The courtroom additionally quashed the remand orders issued by the particular PMLA courtroom and rejected the ED’s plea for a keep on the discharge. 

Mr. Pawar was arrested on August 13, 2025, in reference to a cash laundering probe linked to 41 unauthorised constructions throughout Vasai and Virar. These buildings, erected between 2008 and 2021 on land reserved for public infrastructure, had been ordered to be demolished by the High Court in July 2024. The demolition, accomplished by February 2025, displaced over 2,000 households. 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, performed a central position in facilitating unlawful constructions by accepting bribes of ₹150 per sq ft, with ₹50 allegedly routed on to him. The company claimed that Mr. Pawar earned ₹169 crore in proceeds of crime and used shell firms to launder funds. 

Assets value ₹71 crore have been connected, together with ₹44 crore linked to Mr. Pawar. The chargesheet named his spouse, Bharti Pawar, as a key confederate, together with entities equivalent to Shrutika Enterprises, Janardan Agro Services, Antonov Warehousing Parks Pvt Ltd, and Dhwaja Warehouses Pvt Ltd. Jewellery and money value ₹32 crore had been seized, and members of the family had been recognized as beneficiaries of the laundered belongings. 

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

Including Mr. Pawar, the ED has to date arrested 4 people in complete, that features city planner Y. Shiva Reddy, and builders Sitaram and Arun Gupta, who stay in judicial custody.