In a major development shaking India’s financial sector, Viresh Joshi — former Chief Dealer and Fund Manager at Axis Mutual Fund — has been arrested by the Enforcement Directorate (ED) in connection with a massive ₹200 crore front-running scam. The arrest marks one of the most high-profile cases of insider trading and market manipulation in recent years, raising serious questions about ethical practices within mutual fund operations.
Who is Viresh Joshi?
Viresh Joshi was a senior executive at Axis Mutual Fund, one of India’s largest asset management companies. As the Chief Dealer and Fund Manager, he was responsible for executing large trades on behalf of the fund, managing high-value portfolios, and influencing key investment decisions. Joshi held a powerful position with direct access to sensitive market data — and allegedly used that access for personal gain.
His employment with Axis Mutual Fund was terminated in May 2022 after internal red flags pointed toward suspicious trading activity. While the fund initially kept details under wraps, it later confirmed that Joshi and another fund manager were under investigation for potential front-running — a serious market offence.
Details of the ₹200 Crore Scam
According to the ED, Joshi orchestrated a complex front-running racket between 2018 and 2021. The profits from these illicit trades are estimated to exceed ₹200 crore. Investigators say he used mule trading accounts, routed trades via a terminal located in Dubai, and set up various shell companies to conceal the money trail.
Some of the money was allegedly invested in mutual fund schemes, while the rest was diverted to purchase shares, properties, and other assets across India. The scale and sophistication of the scam has prompted wider scrutiny of compliance practices in the mutual fund industry.
Asset Seizure and Raids
In a coordinated crackdown across Mumbai, Delhi, Gurugram, Ahmedabad, Bhavnagar, Bhuj, Ludhiana, and Kolkata, the ED conducted searches and seized assets worth ₹17.4 crore. These include mutual fund units, shares, bank balances, and other financial instruments linked to Joshi and his associates.
Officials confirmed that Joshi was arrested late on August 2, 2025, and remanded to ED custody by a special court under the Prevention of Money Laundering Act (PMLA). He will remain in custody until August 8, as the investigation continues.
