Axis Mutual Fund probe: IT raids Viresh Joshi, the former fund manager

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The Income Tax department Saturday conducted searches on premises linked to Viresh Joshi, the former chief trader and fund manager of Axis mutual fund, middle men and several brokers on allegations of suspected tax evasion.

Joshi was sacked in May by the asset management company after allegations of front running and broker payments surfaced.

Sources said that the raids which commenced on Saturday included questioning of Joshi and the brokers in the said case. These sources added that the IT action is based on the information shared by SEBI.

Front-running is trading stock or any other financial asset by a broker who has inside knowledge of a future transaction that is about to affect its price substantially.

“SEBI has found certain transactions that point towards Joshi being involved in front running and thereby accumulating assets disproportionate to his income. There are allegations of tax evasion and siphoning of funds abroad and therefore searches have been commenced,” sources in the know told ET.

Joshi was not immediately available for comment. In June he had sued the fund house seeking Rs 54 crore in damages from the fund house to him for alleged wrongful termination and lack of due process in law.

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