Court Denies Bail in Axis Mutual Fund Money Laundering Scandal

In a significant legal decision, a special court has denied bail to Viresh Joshi, the former chief trader and fund manager of Axis Mutual Fund. Joshi is facing grave accusations of misappropriating Rs 91 crore in a money laundering case, highlighting the broader implications of economic offences on the nation's financial systems and socio-economic fabric, said the court.

Special Judge R B Rote rejected Joshi's bail plea, noting the severity of the allegations under the Prevention of Money Laundering Act (PMLA). Detailed documentation of the court's order was made public, shedding light on Joshi's arrest last month by the Enforcement Directorate (ED). Joshi is alleged to have divulged confidential fund trade information to accomplices, exploiting the situation for personal gain during the COVID-19 pandemic.

While Joshi argues his role was purely administrative, the court concluded that recovering a part of the alleged illegal profit does not exonerate him from the offence of money laundering. With the probe still underway, authorities cautioned that granting bail could result in evidence tampering and witness intimidation.

(With inputs from agencies.)