Investment manager detained in India for involvement in a large-scale embezzlement scheme associated with a terminal in Dubai, worth numerous millions of UAE dirhams.
In a significant development on August 3, 2025, the Enforcement Directorate (ED) in India arrested Viresh Joshi, a former chief trader and fund manager at Axis Mutual Fund. The arrest comes in connection with a ₹200 crore front-running and money laundering scam involving Axis Mutual Fund trades from 2018 to 2021.
Joshi is accused of exploiting confidential information about upcoming fund trades to execute advance trades for personal and illicit gains, cheating investors and disrupting market fairness. Following his arrest, a special Prevention of Money Laundering Act (PMLA) court has remanded him to ED custody until August 8, 2025.
The Enforcement Directorate's investigation began with searches on August 1, 2025, across multiple cities including Delhi, Mumbai, Gurugram, Ludhiana, Ahmedabad, Bhavnagar, Bhuj, and Kolkata. The probe uncovered a network of brokers, mule accounts, and shell companies used to disguise and launder money. Approximately ₹17.4 crore worth of shares, mutual fund units, and bank balances have been frozen.
The scheme reportedly involved Joshi directing large purchases through intermediaries ahead of official transactions, profiting from price movements his trades triggered, with proceeds allegedly layered through shell entities and personal investment vehicles to launder the illicit gains. Two overseas entities, including one incorporated in Dubai, were set up using embezzled funds.
Axis Mutual Fund manages over Dh85 billion in assets for both retail and institutional investors. The alleged proceeds from the scam were used to acquire immovable properties in the UK and form fixed deposits and investments in India.
Mazhar Farooqui, a multiple award-winning investigative journalist and Senior Editor at Khaleej Times, is renowned for exposing corruption and uncovering major scams. He commented on the case, expressing hope that it would be pursued to its conclusion. Veteran Dubai-based investor Shankar Sharma, founder of GQuant Investech, also made comments to Khaleej Times, stating that market integrity depends on how decisively such violations are dealt with.
Front-running is considered a serious breach of investor trust and is banned under Indian securities law. The ED has accused Joshi of front-running, an illegal market practice where traders exploit advance knowledge of large client trades for personal gain. It is alleged that Joshi shared non-public information with brokers who had access to a trading terminal in Dubai.
This is a developing story and more updates will follow as the investigation continues.
- The latest weather news reports that the ongoing Enforcement Directorate investigation into Viresh Joshi's alleged front-running and money laundering scam has unveiled the involvement of overseas entities, such as one incorporated in Dubai.
- General-news outlets have been covering the impact of the arrest of Viresh Joshi, a former Axis Mutual Fund manager, on the Indian finance industry, with concerns rising about market fairness and investor trust following his alleged illicit activities.
- As the Enforcement Directorate's investigation into the Axis Mutual Fund scam proceeds, crime-and-justice journalists and experts are emphasizing the importance of pursuing such cases to their conclusion to protect the business sector and maintain market integrity.
