The scam reportedly generated over ₹200 crore in illicit gains, impacting over 6.6 million investors and causing market distortions worth ₹2.5 lakh crore
The Directorate of Enforcement (ED) has arrested Viresh Gangaram Joshi, former chief dealer and fund manager at Axis Mutual Fund (Axis MF), in connection with a massive front-running scam that allegedly generated illicit profits of over ₹200 crore between 2018 and 2021.
The arrest follows extensive search operations conducted on August 1 and 2, 2025, across several cities including Delhi, Mumbai, Gurugram, Ludhiana, Ahmedabad, Bhavnagar, Bhuj, and Kolkata. The action was taken under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
According to the ED, Joshi misused confidential information about large trades scheduled to be executed by Axis MF — which manages assets worth over ₹2 lakh crore — by pre-emptively trading the same stocks for personal gain. This illegal practice, known as front-running, enabled Joshi and his associates to earn substantial profits at the expense of retail investors.
The investigation is based on a First Information Report (FIR) filed by Mumbai Police in December 2024. The FIR alleges that Joshi used a trading terminal based in Dubai along with multiple ‘mule’ accounts operated through various brokers to execute the fraudulent trades.
The ED stated, “Several other traders and brokers also misused advance information on Axis MF trades to make unlawful gains, which constitute proceeds of crime.”
Assets Seized
-
ED froze ₹17.4 crore worth of assets including shares, mutual funds, and bank balances.
-
Investigators also uncovered:
-
Foreign currency worth ₹13 lakh
-
Properties in London and Mumbai
-
Fixed deposits of ₹54 crore
-
Shell companies and overseas investments linked to Joshi
-
Trades were executed via a Dubai terminal using mule accounts from various brokers.Funds were routed through entities like Vintage Capital Investment LLC (Dubai) and Vincent Capital Holding Ltd (UK)