Vasai-Virar Illegal Construction Scam: Special PMLA Court Rejects Bail Pleas Of Former VVCMC Official, Builder

Mumbai, September 2, 2026: The special PMLA court has denied bail to Y. Shiva Reddy, former deputy director in the Vasai-Virar City Municipal Corporation (VVCMC), and builder Arun Gupta. The Enforcement Directorate arrested Reddy, Gupta, and others in August last year over allegations of money laundering in connection with illegal constructions.

Reddy claimed he had no role in building the 41 illegal structures, stating there is no connection between the seized property and the crime. Arun Gupta argued he was not involved in the money laundering and that there was no evidence linking him to the offence. The court rejected both pleas, citing disproportionate assets and the risk of the accused fleeing. The court also noted that the accused's actions had rendered 2,500 families homeless.