The Enforcement Directorate (ED) has arrested Viresh Joshi, former chief dealer and fund supervisor at Axis Mutual Fund, below the Prevention of Cash Laundering Act (PMLA).
The arrest is linked to a case involving alleged dishonest of buyers by an unlawful buying and selling observe often known as “front-running,” involving over Rs 200 crore.
Joshi was taken into custody on Saturday and was offered earlier than a particular PMLA court docket, which has remanded him to ED custody till August 8.
The ED launched searches on August 1 throughout a number of cities, together with Delhi, Mumbai, Gurugram, Ludhiana, Ahmedabad, Bhavnagar, Bhuj, and Kolkata. These operations are a part of a broader investigation into unlawful buying and selling actions that occurred between 2018 and 2021.
The probe relies on a First Data Report (FIR) filed by Mumbai Police in December 2024. In line with the ED, Joshi misused confidential buying and selling info from Axis Mutual Fund to make private good points by pre-planned trades. In consequence, buyers within the fund, which manages belongings value over Rs 2 lakh crore, have been misled and financially harmed.
Investigators additionally allege that Joshi positioned commerce orders utilizing a terminal in Dubai, routing them by varied “mule” accounts obtained from totally different brokers. The ED claims that a number of merchants and brokers have been concerned on this unlawful scheme, utilizing early commerce info to generate illicit earnings.
Up to now, over Rs 200 crore in alleged illegal good points have been recognized. The ED warns that this quantity could enhance because the investigation continues. Additionally it is alleged that the cash was moved by shell corporations and a number of financial institution accounts linked to the accused and their relations.
Throughout the searches, the ED froze shares, mutual funds, and financial institution balances value Rs 17.4 crore.
The case remains to be below investigation.
