ED notice to suspended IAS couple Arvind and Tinoo Joshi

The Enforcement Directorate (ED) has issued notice to Madhya Pradesh IAS couple Arvind and Tinoo Joshi for alleged violation of Foreign Exchange Management Act (FEMA).

The couple in Bhopal owns assets worth Rs 360 crore with 25 flats and 400 acres of land.

The couple was suspended after Income Tax officials recovered Rs.3 crore in cash from their residence during a raid in Feb-2010. Foreign exchange worth $12000, 1800 Pounds and 1000 Euros were found during raids at their house.

Arvind Joshi allegedly purchased 100 acres of agricultural land in the name of his NRI (Non-Resident Indians) sisters over a period of time which is a violation of FEMA.

The officials had also found jewellery and documents of properties disproportionate to their known sources of income. The raid The Lokayukta of Madhya Pradesh had also filed an FIR against them.

Arvind Joshi was Commissioner of Economic Rehabilitation for Bhopal gas victims from 1997 to 1999 and during his tenure there were allegations of supplying inferior quality material to hospitals meant for gas victims.

This week, the I-T department submitted two appraisal reports to the Lokayukta and the state government on earlier raids. One report claimed that a search of official residence of an IAS couple Arvind and Tinoo Joshi on Feb 4, 2010 revealed unaccounted wealth of Rs 360 crore.

Cash and foreign currency found was too much to be counted manually ? machines counted Rs 3 crore in cash and Rs 7 lakh in foreign currency. Gold worth Rs 67 lakh kept in a suitcase was also seized.

Documents recovered from their possession revealed that the 1979 Madhya Pradesh cadre IAS couple had purchased 25 flats. The family paid a life insurance premium of Rs 3.5 crore, speculative trading for 274 crore and bought stock specific shares for Rs 3 crore.