Axis Mutual Fund Manager: The Economic Offences Wing (EOW) of the Mumbai Police has launched an investigation into a massive front-running fraud involving Viresh Joshi, a former chief dealer at Axis Mutual Fund, and several accomplices. The scam, reportedly executed between September 2021 and March 2022, involves insider trading, cheating, forgery, and criminal conspiracy, resulting in substantial financial losses for investors.
Insider Trading and Front-Running Allegations
Joshi and his associates, including Sumit Desai, Pranav Vora, Dubai-based Brijesh Kurani, and Vaibhav Pandya, are accused of leaking confidential information about Axis Mutual Fund’s investment plans to stockbrokers. This unethical practice, known as front-running, allowed the brokers to manipulate stock prices for illegal profits.
Police revealed that Joshi used multiple phones and WhatsApp calls to pass sensitive details to brokers, who then guided their clients to make strategic trades. This manipulation harmed over 66 lakh investors and led to an estimated loss of ₹2.5 trillion.
Lavish Wealth Uncovered
The investigation has revealed that Joshi acquired significant wealth during the period of fraudulent activities. His assets include fixed deposits worth ₹54 crore, Mumbai real estate valued at ₹150 crore, and properties in London.
Legal Action and Nationwide Raids: Axis Mutual Fund Manager Scam
The case was initiated following a complaint by an investor, Soni Parmar, which led to an FIR filed by the Sion police after a magistrate court order. The scam has attracted the attention of multiple enforcement agencies, including the Income Tax Department and the Enforcement Directorate (ED).
In August 2022, IT officials conducted raids in Mumbai, Ahmedabad, Vadodara, Bhuj, and Kolkata. These operations uncovered unaccounted deposits exceeding ₹55 crore and led to the freezing of more than 20 lockers linked to Joshi and his network. Meanwhile, the ED has launched an investigation under the Foreign Exchange Management Act (FEMA) to probe potential violations involving foreign currency transactions.
Forgery and Manipulation
The accused also allegedly forged documents and manipulated stock prices to deceive mutual fund investors. Police suspect that the profits from these illegal activities were funneled into multiple accounts and investments, bypassing market regulations and eroding trust in the financial system.
Call for Regulatory Reforms
The case has exposed vulnerabilities in India’s financial markets, emphasizing the need for stricter regulatory measures to prevent such scams in the future. As the investigation progresses, authorities aim to uncover the full extent of the conspiracy and hold those involved accountable.
The spotlight now remains on the systemic loopholes exploited in this high-profile case, which has shaken investor confidence in the country’s mutual fund sector.
