Mumbai: The Enforcement Directorate (ED) has claimed that former Axis Mutual Fund (MF) manager Viresh Joshi used nearly 273 entities to channel funds, allegedly earned through front-trading, into the accounts of his family members. Joshi is accused of laundering Rs104.54 crore obtained through these trading.
ED Files Complaint Against Joshi and Family
The agency recently submitted a prosecution complaint (PC) against Joshi, his wife Vaishali, his brother Vipul, father Gangaram and two others, accusing them of laundering funds which Joshi earned through front trading.
It alleged that Joshi, who was working as the chief dealer of Axis MF and had access to confidential information about the fund’s schemes and policies, violated this trust by sharing sensitive information, resulting in severe financial losses to numerous investors.
The agency has claimed that Joshi took advantage of the work from home facility during the pandemic, and passed on non-public information to his associates enabling them to make a position ahead of big order placement of trades by Axis MF.
Witness Says 88% of Profits Went to Joshi
A witness has told the ED that 88% of the profit earned through the front trading went to Joshi. The agency said it is still probing the other beneficiaries, who have been identified. The ED said its probe has revealed that the illegally generated profits were routed through multiple shell companies before being transferred to the personal bank accounts of Joshi’s family members, and later used to acquire properties.
The agency identified around 273 Kolkata-based entities involved in these transfers and issued summons to 25 of them, which were returned unserved by the postal authorities. The agency alleged that these entities did not exist at their given addresses. An analysis of their bank statements showed circular transactions – round-figure credits followed by immediate debits with no financial rationale. Most of the accounts were either dormant or closed shortly after brief operations, and the companies had been struck off by the MCA authorities.
To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/
