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The Directorate Directorate (ED) has arrested Viresh Joshi, a former main trader and fund manager of Axis Mutual Fund, after a money laundering in a case of cheating by investors compared to £ 2 Lakh Crore.
Joshi, arrested on Saturday, was sent to ED until 8 August by a special Prevention of Money Laundering Act (PMLA) Court, the agency said.
His arrest took place after the ED search for places, including in Delhi, Gurugram, Mumbai, Ludhiana, Ahmedabad, Bhavnagar, Bhuj and Kolkata, to collect evidence and more information in the business on 1 August.
The ED said that the shares are frozen, investment funds and bank balance worth RS 17.4 Crore during the searches.
He is accused of being a party to ‘Front-Running’, which means that he resorts to unethical and illegal practice on the securities market in which brokers or traders execute orders for their own advantage using prior knowledge of in hinging customer orders.
The malpractice are in danger and disadvantages other investors.
“The search activities were part of an ongoing investigation into the illegal profits of certain entities/people by pampering prominent trading activities in scrips that were traded by Axis Mutual Fund from 2018 to 2021,” said the Ed.
The ED has investigated the case under the civil provisions of the Foreign Exchange Management Act (FEMA).
Earlier in 2022, the income tax department had carried out searches in this case.
The ED took over the case of a FIR registered by the Mumbai Police in December 2024 and accused the former Fund Manager of Axis Investment Fund Joshi of the “operated” of confidential information about the transactions that are carried out on behalf of the company investment fund.
“The accused had used a terminal in Dubai to hit the advance trade assignments through mule trade accounts obtained from various brokers.
“In addition to Joshi, the investigation has shown that many other traders/brokers have also abused the prior input on trade in Axis investment funds and surrender to the front to generate illegal trading profits that are nothing but the yield of crime,” the agency claimed.
The alleged illegal funds generated by various traders/brokers, identified to date, amounts to more than RS 200 Crore and this amount could be much higher, the ED said.
Published on August 3, 2025
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