Supreme Court rejects Enforcement Directorate’s special leave petition challenging Vasai-Virar municipal commissioner’s bail in money laundering case

Mumbai: The Supreme Court on Tuesday rejected the special leave petition filed by Enforcement Directorate (ED), challenging the bail granted to the former municipal commissioner of Vasai-Virar City Municipal Corporation (VVCMC), Anil Pawar, in a money laundering case.In October 2025, the Bombay high court granted bail to Pawar, terming his Aug 13 arrest "illegal". The HC said the same or similar facts were reiterated in the "grounds of arrest" and "reasons to believe" by ED, and the stand taken by the agency was "speculative and based on hazy facts".
It further stated that "the case built up by ED, based on the statement of Y S Reddy [deputy director of town planning] that a codeword system for collection of commission was devised and huge tainted money was received, does not lead anywhere...as no recovery was effected from the premises of the petitioner, or from his possession, or...his family members".The case pertains to multiple FIRs registered over the construction of 41 illegal buildings in Vasai-Virar on govt and private land parcels, including a 60-acre land designated for a sewage treatment plant and dumping ground in the development plan, which were demolished following a 2024 HC order. In May 2025, the ED allegedly seized Rs 8.6 crore in unaccounted cash, along with jewellery and gold worth Rs 23.2 crore, during a raid on Reddy's Hyderabad premises. While examining Reddy's digital records, they found Pawar's involvement in suspicious transactions, which led to their arrest in the money laundering case. The ED chargesheeted Pawar, his wife, and others for money laundering, and alleged that his wife acted as a front to infuse proceeds of crime of Rs 169.6 crore into the legal mainstream, projecting it as untainted. The agency also attached properties worth Rs 71 crore, of which Rs 44 crore allegedly belonged to Pawar.Pawar had claimed that the alleged proceeds of crime were generated many years ago when he was not posted at VVCMC, so he had no role in the money laundering case. The ED's contention was that money laundering is a continuous offence, and Pawar provided protection to those illegal buildings — pertaining to the case and now demolished — in exchange for bribe.The ED filed the SLP in SC immediately after the Bombay high court released Pawar on bail.