HC issues notice to CBI in ex-Axis MF manager’s front-running fraud case

Mumbai: The Bombay High Court on Friday issued a notice to the Central Board of Investigation (CBI) in a plea related to an alleged multi crore mutual fund scam case against Viresh Joshi, a former manager at Axis Mutual Fund, and others, in connection with the multi-crore ‘front-running’ fraud. A bench of justice Revati Mohite-Dere and justice Dr. Neela Gokhale was listening to a plea file by Soni Parmar, through advocate Pratap Nimbalkar..

The Sion police had earlier registered a first information report (FIR) based on a complaint by Parmar. The case had been transferred to the Economic Offences Wing (EOW) of the Mumbai police. Parmar approached the high court seeking transfer of investigation to CBI or Enforcement Directorate.

The plea alleges market manipulation by Joshi when he was chief dealer with M/s. Axis Assets Management Company Limited during the period between September 2021 to March 2022. The plea states that Joshi committed not only cheating and breach of trust of investors but also indulged in committed forgery of documents to cover up their tracks.

It also alleges that an investigation conducted by the Securities Exchange Board of India (SEBI), brought to light Joshi and others’ role in front-running trades, based on non-public information provided by Joshi to stockbrokers. This has caused unlawful loss to the MF and its investors, and unlawful gain to the accused. A SEBI order against Joshi and others earlier impounded wrongfully earned sum of up to ₹30.55 crore.