BHOPAL: As many as 33 insurance policies held by sacked Indian Administrative Service (IAS) officer Arvind Joshi and family members in Madhya Pradesh have been permanently attached by the Income Tax department under the Prohibition of Benami Property Transactions Act.
The Adjudicating Authority under the Act recently confirmed the attachment of the 33 insurance policies, which were provisionally attached in November 2017.
With this development, the decks have been cleared for the IT department to initiate proceedings for confiscating these 33 attached insurance policies in which Joshi and family members had allegedly invested black money to the tune of Rs 3.5 crore in early 2000.
In the early part of 2000, the 1979-batch IAS officer Arvind Joshi and family members had used services of Seema Jaiswal, a senior employee of a premier insurance company to make investments in insurance policies.
Jaiswal used bank accounts of her family members as well as colleagues to first park cash taken from Joshi and family members. Subsequently, the cheques and demand drafts from these bank accounts were issued to buy the 33 insurance policies that now stand attached permanently, sources in the IT Department confided to New Indian Express on Tuesday.
The matter had come to the fore after the IT department conducted searches at the premises of the 1979-batch MP cadre IAS officer couple Arvind and Tinoo Joshi in Bhopal in 2010.
Since the funds were routed through bank accounts of others to buy the policies for Joshi and family members, it came under the purview of the new Benami law.
The Joshi family, however, still has the option of appealing before the Appellate Tribunal in the matter. The IT department is also likely to now begin the process of criminal prosecution of Joshi and family members in the matter.
According to sources in the IT department, has also initiated proceedings to provisionally attach around 100 benami properties comprising 220 acres land held by Joshi and his family in various parts of MP. Out of these properties, around 100 acres land has already been attached by the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA).
For the first time in the history of Indian Administrative Service, two IAS officers Arvind Joshi and wife Tinoo Joshi were dismissed in July 2014 from service by the government, four years after an income tax search on their house led to detection of disproportionate assets worth Rs 350 crore and recovery of Rs 3 crore in cash.
The income tax department conducted search at their premises at 74 Bungalow, Dayanand Nagar in Bhopal on February 4, 2010. Subsequently, the IAS couple was suspended in February 2010 when Arvind Joshi was the principal secretary (jail) while Tinu Joshi was principal secretary of women and child development department.
In March 2010, Lokayukta also raided their same premises and found assets disproportionate to their known sources of income.In 2011, ED registered a case under provisions of Prevention of Money Laundering Act, 2002, and initiated the investigation.
Following a look out notice, Arvind Joshi surrendered before court in Bhopal on September 16, 2015, and was sent to jail. Tinu was sent to jail in February 2015.