Axis Mutual Fund investors cheated | Rs 91 crore credited in family accounts of former fund manager: ED
Joshi was produced before the special court on Friday and was sent to judicial custody after the ED did not press for his further custody for interrogation
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The ED remand application in the case alleges that Joshi is associated with members of ‘organised crime syndicate’ engaged in large-scale front-running (Archive)The Enforcement Directorate (ED), probing the alleged cheating of investors by Viresh Joshi, former chief trader and fund manager of Axis Mutual Fund, has said around Rs 91 crore was credited from shell companies to the bank accounts of his family members. The ED claimed to have details of 31 such accounts involved in the transactions.
Joshi was arrested by the ED on August 2 for the alleged misuse of confidential information on the trades to be executed on behalf of Axis Mutual Fund to pre-emptively trade stocks and generate substantial illicit gains through front-running. It is considered illegal in the securities market when brokers or traders execute orders for their own benefit using advance knowledge of pending client orders.
Joshi was produced before the special court on Friday and was sent to judicial custody after the ED did not press for his further custody for interrogation. The ED remand application in the case alleges that Joshi is associated with members of ‘organised crime syndicate’ engaged in large-scale front-running. It claimed further that money generated through the illegal practice was layered through various accounts, suspecting the proceeds of crime to be Rs 300 crore.
“..the generated proceeds of crime… were routed through the accounts and managed and controlled by Viresh Joshi, including the mule accounts linked to 282 individuals/entities. He subsequently layered and placed the proceeds of crime in his family members’ bank accounts and finally used it for acquiring several immovable properties,” the ED claimed, adding that these properties were bought in India and abroad. It alleged that no explanation or documentary proof was provided on the suspected transactions.
The ED claimed that as part of his job profile, he was privy to confidential information which he shared for personal gain. Joshi’s lawyer Manan Sanghai had told court that the Income-Tax department had frozen assets and his custodial interrogation was needed. It was also submitted that these issues were put before the SEBI in its probe.
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