Law Judge And Justice Symbol
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. “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 judge noted that Reddy was a public servant and that assets allegedly found in Reddy’s possession “were disproportionate to known sources of income”. Additionally, the court also said rejected the bail plea of builder and broker Arun Gupta , who faces money laundering charges. 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. “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.
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 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.
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.
Court Denies Bail to Former Municipal Official in Money Laundering Case
A special court in Mumbai has denied bail to Y Shiva Reddy, the former Deputy Director of Town Planning for the Vasai-Virar City Municipal Corporation. This decision comes a year after his arrest in a money laundering case. The court found that evidence presented by the Enforcement Directorate (ED) indicated Reddy’s alleged possession of substantial tainted assets.
According to the judge, the investigation uncovered that the proceeds of crime were generated through criminal activities related to scheduled offenses. Reddy is accused of acquiring significant amounts of cash, gold, diamond-studded jewelry, bullion, and other luxury items, demonstrating his active involvement in money laundering activities.