MUMBAI, Oct. 16 -- In a relief to former Vasai Virar City Municipal Corporation (VVCMC) commissioner Anil Pawar, the Bombay High Court on Wednesday held that his arrest on August 13, in connection with the Enforcement Directorate's (ED) money laundering probe into the construction of 41 now-demolished illegal buildings in Vasai East, was illegal. A bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad said the ED did not have "tangible material" required for his arrest under section 19 of the Prevention of Money Laundering Act, which pertains to reasons to believe that a person is guilty of an offence. "We mean that there is no tangible material and the whole case of ED is based on statement of certain architects and developers," the bench said. "The orders passed by the special judge remanding him are quashed. The petitioner shall be released." Pawar assumed charge as the VVCMC commissioner on January 13, 2022, whereas the 41 illegal buildings in question were built and sold by the 43 accused builders during 2008-2010, his lawyer Ujjwalkumar Chavhan told Hindustan Times. "For me, this is a case of satyagraha," the lawyer and former Indian Revenue Service (2010 batch) officer said. ED sources said they would go through the court's order when the copy is available and seek legal advice on the option of moving the Supreme Court. The ED's grounds for arresting Pawar, mentioned under the 'Reasons To Believe' heading in the arrest documents, pertained to his alleged involvement in acquisition, possession, and concealment of the proceeds of crime. The ED contended that though Pawar was responsible for taking action against the illegal 41 buildings in Vasai East, he turned a blind eye to violations and instead charged commission at the rate of Rs.50 per square feet to stall any punitive action. He also charged a commission at the rate of Rs.20-25 to Rs.50 per square feet for granting development permissions, the ED claimed. The agency accused Pawar of receiving more than Rs.17.75 crore from VVCMC deputy director of town planning, YS Reddy - who was arrested along with him on August 13 - based on analysis of WhatsApp chats. The money was received in lieu of granting various development permissions and the same was delivered to a distant relative, the ED alleged. The relative had acknowledged receiving Rs.3.375 crore in cash at his Dadar office from an angadia (human courier), through Reddy, on the instructions of Pawar, the ED said. The agency also accused Pawar of using the proceeds of crime to purchase luxury expensive sarees, pearls, and gold and diamond jewellery through Reddy. He invested substantial amounts in firms in the name of his wife, daughter, and distant relatives to launder the money, the ED suspected. Pawar's lawyer moved the high court last month, seeking that his arrest be declared illegal, the proceedings against him in the money laundering case be quashed, and he be released forthwith. The ED's allegations mentioned in the 'Reasons To Believe' section in the arrest documents were untenable, Chavan told the court. "The investigation that should have been conducted was skipped and an investigation, which is beyond jurisdiction, was conducted," he alleged. The money paid by nearly 3,500 families to purchase homes and commercial units in the 41 now-demolished illegal buildings should have been treated as the proceeds of crime in the case, Chavan said. Since the total area for sale was approximately 9 lakh square metres and the rates ranged Rs.1,500 to Rs.5,000 per square foot, the POC was between Rs.100-500 crores, he contended. "This is the starting point of the POC, from which further money trail should have been investigated under the PMLA," Chavan said. The POC should have been traced to the accused builders for every financial year, he added. In the petition, Pawar said there was no mention of any amount from this POC under the grounds of arrest and reasons to believe. There was no material available on record against him in the form of a bank statement, ledger, books of account, loose sheet, diary, sale agreement, oral statement of any buyer or the accused builders, referring to any POC, the petition noted. "It is evident that respondent no 1 (ED) had not investigated the foundational fact of money laundering before arresting the petitioner (Pawar)", Chavhan told the court. Chavhan also claimed that Pawar was not in the picture when the 41 illegal buildings were constructed. "The 41 buildings were constructed in the years 2008-2010.Petitioner was not posted during the relevant time, as he was posted on January 13, 2022 as commissioner, VVCMC," Chavhan said. Chavhan further contended that three foundational facts were not fulfilled - no case was registered directly or indirectly against Pawar in any police station across India; there was no predicate offence in which there was any documentary proof against Pawar, wherein he was named as an accused directly or indirectly; and Pawar had never received any amount, either in cash or cheque, which could be termed as POC....