Viresh Joshi, the alleged mastermind behind the
Axis Mutual Fund front-running scam, and seized
Rs. 17.4 crore worth of shares, mutual funds, and bank balances
in the ongoing money laundering investigation.
Joshi, the former Chief Dealer of Axis Mutual Fund, was arrested under
the Prevention of Money Laundering Act (PMLA), 2002. He was produced
before the Competent Court, which granted ED custody till August 8,
the agency said in an official statement.
Multi-City Search Operations
ED officials conducted extensive search operations across
Delhi, Mumbai, Gurugram, Ludhiana, Ahmedabad, Bhavnagar, Bhuj, and Kolkata
on Friday and Saturday.
The probe links Joshi and other traders to front-running trades
executed between 2018 and 2021, using confidential Axis Mutual Fund data
to generate illegal profits.
Front-Running Network Uncovered
The investigation, initiated after a Mumbai Police FIR in December 2024,
revealed that Joshi exploited confidential trade information to execute
trades via a Dubai-based terminal using mule accounts
obtained from various brokers.
The ED estimates proceeds of crime exceeding Rs. 200 crore, routed
through multiple shell entities and family-linked bank accounts.
The figure is expected to rise as the probe continues.
Impact on Investors
The ED stated that Joshi’s fraudulent activities cheated investors
of Axis Mutual Fund, which manages assets worth over Rs. 2 lakh crore.
Several other traders and brokers allegedly misused advance trade information
to indulge in front-running, generating illicit profits and
undermining market integrity.
