Sion police files case against former Axis mutual fund manager in Rs 2.52 lakh crore fraud case

Mumbai: A businesswoman filed a fraud case against Axis mutual fund dealer Viren Joshi on charges of misappropriation. Soni Jitendra Parmar (51), a businesswoman based in Wadala, Mumbai, filed a case against Viren Joshi, a senior dealer at Axis Mutual Fund, accusing him of a large-scale financial fraud.

The complaint, initially filed in the Kurla court, led to the direction of the senior inspector of the Sion police station to register a case and conduct further investigation.

According to the police, the applicant, Soni Parmar, had a bank account in the Sion branch of Axis Bank and was an investor in Axis Mutual Fund. Joshi, as a master dealer, allegedly breached confidentiality by releasing confidential investment information to unauthorized individuals and private companies between September 2021 and March 2022, compromising the integrity of the market.

Parmar named several of Joshi’s accomplices involved in the scheme, including Sumit Desai, Pranav Vora, Briesh Khurani and Vaibhav Pandya. She accused them of setting up shell companies under Marfatia Group, Woodstock Group and Kurani Group.

Joshi allegedly used multiple mobile phones to transmit confidential trading strategies, transferring large trades to personal accounts linked to trading terminals in Dubai operated by these accomplices.

The complaint also stated that the illegal trading operations yielded a profit of Rs 30.56 crore, of which Joshi personally earned Rs 12 crore. Additionally, a Dubai account linked to the Kurani Group was used to launder Rs 11.62 crore during April-May 2022 by converting the amount from dirhams to Indian rupees.

The financial trail allegedly leads to offshore holdings, including hefty fixed deposits and prime properties in Mumbai and London worth over Rs 150 crore.

Petitioner Parmar also referred to the ongoing SEBI investigation where an ex-parte order dated February 28, 2023 had placed restrictions on Joshi and his partners under several sections of the SEBI Act, 1992.

In addition, the Income Tax Department has reportedly seized Rs 55 crore related to his undeclared assets. 66 lakh investors of Axis Mutual Fund suffered an estimated loss of ₹2.52 lakh crore due to unauthorized trading and stock manipulation organized by Joshi and his network.

Parmar’s complaint seeks criminal charges of fraud, conspiracy and forgery. On December 23, the Sion police registered an FIR against Viresh Joshi, Sumit Desai, Pranav Vora, Briesh Khurani and Vaibhav Pandey under sections 417, 420, 406, 465, 467, 468, 477(A), 120(B) and 34 of the IPC. This case has been handed over to the EOW for further investigation, said DCP Ragsudha.