Mumbai Crime: Ex-Axis Mutual Fund Manager Used 282 Fake Entities To Launder ₹91 Crore, Says ED

Mumbai: The Enforcement Directorate has alleged that Viresh Joshi, former fund manager of Axis Mutual Fund, received Rs 91 crore from suspicious sources, which he has used to buy immovable properties in India and abroad.

He is also alleged to have laundered funds by establishing more than 282 fake entities or individual mule accounts. Huge proceeds of crime were also routed through accounts belonging to Joshi's family.

ED Alleges ₹91 Crore Laundered Through Fake Entities

On Friday, the court accepted the ED's request and remanded Joshi to judicial custody. According to the agency, he was working as the chief dealer of Axis mutual fund and had access to confidential information regarding the mutual fund’s schemes and policies. However, it is alleged that he violated this trust by sharing sensitive information, causing severe financial losses to numerous investors.

The ED pointed out that the statement of Sumit Desai, one of Joshi’s associates, revealed insights into the crime. The accused apparently arranged dubious trading accounts, said Desai, as per the agency.

Family Accounts Used to Move Illicit Funds

It is further alleged that Joshi had received Rs 91 crore from various unknown entities or individuals in various accounts of the family members of Joshi. After detailed analysis, the ED claimed that certain individuals were involved in a synthetic scheme to launder the illicit proceeds collected via multiple channels.

“It is revealed that certain individuals opened accounts in the name of fictitious entities or persons. Large sums were credited to these accounts from various sources (like shell firms) and shortly after, a significant portion was transferred to the accounts of Joshi's family members,” the ED said. The money was then diverted to Joshi, it added, alleging that Rs 2.4 crore was transferred from his accounts to buy property abroad.

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Properties in Mumbai, Karjat and Overseas

In her statement, Joshi’s wife gave details of nine properties, which he bought between September 2017 to July 2020. Two flats each in World View tower and Trump Tower, and a property in Karjat are among the assets.