In a major crackdown on the Axis Mutual Fund front-running scandal, the Enforcement Directorate (ED) has arrested Viresh Gangaram Joshi, the former Chief Dealer of Axis Mutual Fund, under the Prevention of Money Laundering Act (PMLA), 2002. The arrest took place on August 2, 2025, and Joshi has been remanded to ED custody until August 8 for further investigation.

The ED conducted search operations on August 1 and 2 across multiple locations including Delhi, Mumbai, Gurugram, Ludhiana, Ahmedabad, Bhavnagar, Bhuj, and Kolkata. These operations stem from an FIR filed by Mumbai Police in December 2024, which alleged that Joshi and others used confidential information about Axis Mutual Fund trades between 2018 and 2021 to execute personal trades ahead of client orders—a practice known as front-running.

The investigation has uncovered that Joshi used a trading terminal in Dubai and multiple mule trading accounts to carry out these illicit trades. Several traders and brokers are also under the scanner for exploiting advance trade inputs to generate illegal profits. So far, the ED has identified proceeds of crime worth over Rs 200 crore, a figure that may increase as the probe progresses.

As part of the operation, the ED has frozen assets—including shares, mutual fund holdings, and bank balances—worth Rs 17.4 crore. The proceeds were allegedly routed through shell companies and bank accounts linked to the accused and their family members.

The ED emphasised that front-running erodes investor trust and undermines market integrity. Axis Mutual Fund currently manages assets worth over Rs 2 lakh crore.