The Enforcement Directorate (ED) has arrested Viresh Joshi, former chief trader and fund manager at Axis Mutual Fund, under the Prevention of Money Laundering Act (PMLA).

The arrest is linked to a case involving alleged cheating of investors through an illegal trading practice known as “front-running,” involving over Rs 200 crore.

Joshi was taken into custody on Saturday and was presented before a special PMLA court, which has remanded him to ED custody until August 8.

The ED launched searches on August 1 across multiple cities, including Delhi, Mumbai, Gurugram, Ludhiana, Ahmedabad, Bhavnagar, Bhuj, and Kolkata. These operations are part of a broader investigation into illegal trading activities that occurred between 2018 and 2021.

The probe is based on a First Information Report (FIR) filed by Mumbai Police in December 2024. According to the ED, Joshi misused confidential trading information from Axis Mutual Fund to make personal gains through pre-planned trades. As a result, investors in the fund, which manages assets worth over Rs 2 lakh crore, were misled and financially harmed.

Investigators also allege that Joshi placed trade orders using a terminal in Dubai, routing them through various “mule” accounts obtained from different brokers. The ED claims that multiple traders and brokers were involved in this illegal scheme, using early trade information to generate illicit profits.

So far, over Rs 200 crore in alleged unlawful gains have been identified. The ED warns that this amount may increase as the investigation continues. It is also alleged that the money was moved through shell companies and multiple bank accounts linked to the accused and their family members.

During the searches, the ED froze shares, mutual funds, and bank balances worth Rs 17.4 crore.

The case is still under investigation.