The Bombay High Court on Wednesday declared the arrest of suspended IAS officer Anil Pawar “illegal”. The Vasai Virar Municipal Commissioner was arrested by the Enforcement Directorate (ED) in a money laundering case. The court ordered his release and said the ED did not have “tangible material” required for his arrest.
The matter was heard by a bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad.
“We have formed an opinion that as on August 13, 2025, the arresting officer has no such material as required under section 19 of the Prevention of Money Laundering Act (reason to believe that person is guilty of offence),” the HC said.
“We mean that there is no tangible material and the whole case of ED is based on statements of certain
architects and developers,” the bench said.
Pawar was arrested by the ED on August 13. The former chief of the Vasai Virar City Municipal Corporation (VVCMC) in Palghar district had moved the HC challenging his arrest in the case and subsequent orders passed by a special court remanding him to judicial custody.
The high court on Wednesday quashed the special court’s orders too.
“The petition succeeds to the extent that the arrest of petitioner on August 13 is illegal. The orders passed by the special judge remanding him are quashed. The petitioner shall be released,” the HC said.
After the order was pronounced, Additional Solicitor General Anil Singh, who was appearing for the ED, sought a stay on it, but the request was declined by the high court.
Pawar is accused of conniving with builders and developers by which 41 illegal buildings were constructed in Vasai and Virar.
Pawar’s counsel, Rajiv Shakdher, argued that the ED’s case relates to 41 unauthorised constructions that came up between 2008 and 2021, while Pawar took over as VVCMC chief only in January 2022.
The ED claimed that Pawar was central to a laundering racket worth hundreds of crores, supported by builder testimonies, WhatsApp chats, and cash trail analysis.
It alleged that senior civic officials, including Pawar, took hefty bribes to overlook rampant illegal constructions across nearly 60 acres.
A corruption case was lodged against Pawar and others, following which the ED began its money laundering probe.