The Directorate of Enforcement (ED), Bhopal Zonal Office, has provisionally attached immovable properties worth around ₹5 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in a case linked to former Madhya Pradesh chief secretary, late Arvind Joshi, IAS, and others.
The attachment forms part of an ongoing money laundering investigation initiated on the basis of an FIR registered by the Special Police Establishment, Lokayukta, Bhopal, under the Prevention of Corruption Act, 1988 (as amended). The FIR alleges offences under Sections 13(1)(e) read with 13(2) of the Act, accusing Joshi of acquiring assets vastly disproportionate to his known sources of income during his tenure as a public servant.
According to the ED, the allegations pertain to the period between July 1979 and December 10, 2010, during which the accused is alleged to have amassed assets worth approximately ₹41.87 crore over and above his known legitimate income. The agency has classified the assets as proceeds of crime under the PMLA.
The ED stated that its investigation revealed that the illicit income was systematically layered and invested in a range of movable and immovable properties. These investments were allegedly made in the names of family members to conceal the true ownership and project the tainted funds as legitimate assets.
Certified Cyber Crime Investigator Course Launched by Centre for Police Technology
The probe further uncovered that several properties were allegedly held benami in the names of S. P. Kohli and his family members, who were identified as close associates in the case. According to the ED, shell companies were floated as part of the laundering mechanism. In these entities, S. P. Kohli was shown as a “manager”, while powers of attorney were issued in his name, enabling acquisition and control of properties using laundered funds.
Investigators believe that the use of proxy ownership, benami arrangements and corporate structures was aimed at obscuring the trail of illicit money and insulating the primary beneficiary from direct ownership on paper.
The ED pointed out that this is not the first attachment in the case. So far, three interim attachment orders have already been issued during the course of the investigation. With the latest action, the total value of properties attached in the case has reached approximately ₹8.5 crore.
The properties provisionally attached in the current round include residential plots, agricultural land and a functional resort located in Bhopal district. These assets are registered in the names of late Arvind Joshi, his family members and his associate S. P. Kohli, and have been identified by the agency as assets acquired from the proceeds of crime.
According to the ED, the investigation indicates a pattern of long-term abuse of official position, wherein public office was allegedly misused to generate illegal income, which was then laundered through complex financial and property transactions. The agency has maintained that the alleged offences constitute scheduled offences under the PMLA, making the proceeds liable for attachment and confiscation under the law.
The ED clarified that the attachments are provisional in nature and subject to confirmation by the adjudicating authority under the PMLA. Further investigation into related financial transactions, additional assets and the role of other individuals linked to the case is currently underway.
The agency reiterated that attachment of assets in money laundering cases is aimed at depriving offenders of the economic benefits of crime and ensuring that illegally acquired wealth does not remain in circulation. Further legal action will be taken based on the outcome of the ongoing probe.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
