Manager took advantage of WFH during Covid and defrauded Rs 106 crores, ED filed in court

During the COVID-19 pandemic, when people across the country were struggling with the lockdown and trying to adapt to the circumstances by implementing WFH, Viresh Joshi, fund manager of Axis Mutual Fund, took advantage of these circumstances and committed a huge scam of Rs 106.741 crore with the help of his associates and fake companies. The Enforcement Directorate (ED) has given this information to the special court of Prevention of Money Laundering Act (PMLA).

What was revealed in the ED charge sheet?

According to the ED chargesheet, of which the court took cognizance earlier this month on March 6, Joshi and others took advantage of the lack of direct monitoring during the pandemic by misusing advance information about transactions of large clients to buy and sell shares for personal gain and front-running.

The charge sheet said these front-running transactions were allegedly carried out between September 2021 and March 2022 using sensitive data of Axis MF, which manages assets worth over Rs 2.5 lakh crore. Of the total proceeds of crime (POC) of Rs 106.74 crore in the case, Rs 104.54 crore or 97.93% belonged to Joshi. The special court on Friday (March 20, 2026) extended Joshi’s judicial custody till April 1, 2026, while co-accused S. Desai was released on bail.

According to the information presented by the ED before the special court, the central agency had started investigating the case in January 2025 on the basis of the FIR lodged by the Sion police on December 23, 2024. Joshi, who was the main dealer of Axis MF at that time, was arrested in August 2025.

The ED investigation revealed that during the pandemic, Axis MF dealers worked without any direct physical supervision as they had the option of working from home or sitting in separate dealing rooms in the office to maintain social distancing. As the chief dealer in Axis MF, Joshi had access to confidential information related to the company’s plans and policies; The ED found that they misused working conditions during the pandemic and passed on such information to other accused so that they could carry out front-running trades.

Who was made accused in the charge sheet?

The chargesheet submitted by the ED said that between September 2021 and March 2022, Joshi and his associates committed a major scam by carrying out illegal trading activities using confidential inside information, which adversely affected the financial condition of Axis MF and its investors. It includes five other accused along with three of his close family members – his wife Vaishali, brother Vipul, father Gangaram and two alleged associates, S. The names of Desai and PK Vora are also included.

Who was responsible for what in the scam?

The ED has said in the charge sheet that Joshi, along with co-accused Desai and Vora, executed a complex scheme to defraud investors, while a suspect named P. Kurani passed confidential information to unauthorized traders. The accused directly participated in unauthorized transactions and manipulated trading accounts based in Dubai, while Kurani monitored these accounts and conducted illegal trading through computerized trading terminals. According to ED investigation documents, through these activities the accused earned illegal profits for Marfatia Group (Rs 9.49 crore), Woodstock Group (Rs 14.07 crore) and Kurani Group (Rs 6.99 crore).

Of the total POC of Rs 106.74 crore, the largest share, Rs 104.54 crore, reportedly went to Joshi, while Rs 2 crore went to Desai and Rs 20 lakh to Vora. The chargesheet said the funds were transacted through a complex web of shell companies and accounts controlled by the accused, their associates and family members. Joshi, using a vast network of shell companies, transferred the receipts to the bank accounts of the family members and using the receipts, acquired several immovable properties in the name of himself and his family members in India and abroad.

ED seizes property worth Rs 45.90 crore in the case

Of the probable transactions (POC) of Rs 104.54 crore linked to Joshi, Rs 57 crore was received through various shell companies in the account of Vibgyor Capital Holding Pvt Ltd, which is registered in the name of his brother and father. This amount was used to invest in fixed deposits in various banks. Another Dubai-based company, Vintage Capital Investment LLC, linked to Joshi’s father and brother, further transferred and concealed this POC.

The ED told the court that the huge wealth acquired by accused No. 1 (Joshi) was generated from POC obtained from activities related to scheduled crime and the other accused have admitted this fact. The agency has so far temporarily seized properties worth Rs 45.90 crore belonging to POC. It has also done a thorough analysis of the bank details related to the transactions that came under its purview.

Joshi’s lawyer raised questions on ED’s charge sheet

Joshi’s lawyer questioned the validity of the ED chargesheet as it was filed by the assistant director and not the director. He submitted before the special court that the charges against his client relate to “front-running activities”, which do not constitute offenses under the Indian Penal Code; Therefore no substantive crime exists. The lawyer said that at the most, it could amount to an offense under the Securities and Exchange Board of India (SEBI) Act, 1992 and related regulations, but SEBI has not filed any complaint in this regard. Therefore the police do not have the jurisdiction to register the case. He also said that the offense of fraud did not apply to Joshi as he was only working as an employee of Axis MF.

Also read: The world is shaken by the fire of Iran war, why is petrol expensive in the world, but stable in India? The real test of the country in the ‘Energy Test’ amidst the threat of inflation