The Raigad collectorate Friday afternoon began demolishing Nirav Modi's sprawling seaside mansion in Kihim in Alibaug.
District Collector Vijay Suryawanshi issued the demolition orders after the Enforcement Directorate (ED) handed over the property situated in neighboring Raigad district, over 90 kilometers from here, sources told PTI.
The seaside mansion was built around 3000 square feet, the swimming pool area has been seized. The officials are on location and the collector came for the inspection on location.
The Bombay High Court on Monday questioned the Enforcement Directorate's (ED) request to stay the demolition order for fugitive jeweler Nirav Modi's illegal bungalow at Alibaug in the adjoining Raigad district.
A division bench of Chief Justice N H Patil and Justice N M Jamdar was hearing public interest litigation (PIL) filed in 2009 by Shambhuraje Yuvakranti of the Akhil Bhartiya Maratha Seva Sangha on the issue.
The Raigad district collector had last month ordered demolition of 58 unauthorised structures, including one of Modi, built along the beach at Alibaug, a coastal town popular with weekend tourists.
The demolition order was passed following rebuke from the high court for failing to initiate action against the illegal structures.
The ED had last week filed an application before the high court, informing it that the said structure was attached by the agency as part of its money laundering probe against Modi.
The agency in its application informed the court that the tribunal set under the Prevention of Money Laundering Act (PMLA) had permitted it to attach the property long before the Raigad collector ordered its demolition.
Last year, the state government wrote to Enforcement Directorate (ED), which had sealed the fugitive diamantaire's bungalow, seeking permission to demolish the illegally-built property on Kihim beach.
Nirav Modi, who is on the run after being named in the Punjab National Bank (PNB) scam, is among 202 bungalow owners who face the threat of their properties being demolished.
Raigad Collector Suryawanshi said the bungalow was illegally built and flouted all environmental norms.
"We have begun proceedings to demolish all 202 illegal bungalows in Alibaug and Murud tehsil," he said.
(With inputs from PTI)