Mumbai: Noting that the illegal activity of the accused led to illegal constructions and their court ordered demolitions rendering approximately 2,500 families homeless, a special court on Wednesday rejected the bail plea of a 62-year-old former corporator, Sitaram Gupta, in a multi-crore money laundering case linked to the encroachment of government land and the construction of 41 illegal buildings in the Vasai-Virar region. “The applicant (Gupta) was a corporator and he had knowledge about the government reserved land for dumping ground and Sewage Treatment Plant (STP). There is no explanation by the accused in respect of the huge amount of Rs 45 lakh cash found at his residence,” special judge RB Rote said. The judge further said considering the major role of the accused mentioned in the prosecution complaint and considering the record of the case, it reveals that there is sufficient material collected by the Enforcement Directorate (ED) to show his involvement. “If the applicant is granted bail, the possibility of tampering with evidence and tampering with the witnesses cannot be ruled out. …possibility of commission of another similar offence cannot be ruled out…considering the gravity, seriousness and magnitude of the offence, the major role of the applicant and the larger interest of the society, the applicant is not entitled for grant of bail,” the judge said.Gupta was arrested on August 13, 2025.The ED submitted that Gupta, representing the Bahujan Vikas Aghadi (BVA), used his political influence to grab nearly 60 acres of land, including 30 acres of government land reserved for a STP and a dumping yard. This land was then illegally plotted and sold to builders through forged documents, generating approximately Rs 37.23 crore in illicit funds. Strongly opposing the plea, special public prosecutor for the ED Kavita Patil submitted, “The illicit funds thus obtained and generated were further utilised to build flats and rooms in unauthorised projects. These flats were then sold to buyers at low rates compared to legal housing, ensuring steady demand. This cycle of cash acquisition, payments to officials and resale of new illegal units shows that he was fully aware of handling and dealing with proceeds of crime.“The defence argued that Gupta had been falsely implicated and that the arrest violated procedural mandates because the grounds of arrest were furnished only in English, a language the accused claimed not to understand. The defence further contended that no evidence linked the Rs 45 lakh seized from Gupta’s residence to any criminal activity. However, the prosecution countered that the accused was central to the bribery network involving municipal officials and had admitted in a statement that he and his nephew received Rs 15 crore from the sale of illegal plots, mostly in cash.The judge dismissed the challenge to the legality of the arrest, noting that the ground regarding the language barrier appeared to be an afterthought. The judge noted that the offence of money laundering is a “standalone and distinct offence” that affects the financial integrity of the nation. In the order the judge said, “The record clearly indicates that there is sufficient material to show that the applicant is actively involved in the predicate offence as well as in the activities connected with the proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming it as untainted property.”
