He has been suspended for alleged irregularities and violation of civic service rules, the order stated.
The action comes after the Enforcement Directorate raided premises linked to Reddy in Palghar district and Hyderabad in Telangana on May 14. As per the ED, the searches yielded Rs 8.60 crore cash as well and diamonds and jewellery worth Rs 23.50 crore.
These events have tarnished the image of the VVMC and constitute violation of the Maharashtra Civic Services (Conduct) Rules, the order by the civic chief said.
Incidentally, Reddy was arrested in April 2016 by the Anti Corruption Bureau for allegedly demanding and accepting a bribe of Rs 25 lakh. He was, however, reinstated following a court order, local officials said. PTI COR BNM