Axis MF’s ousted executive Viresh Joshi sends notice to AMC over his Dismissal

Axis Mutual Fund’s ousted fund manager and chief trader, Viresh Joshi, has sent a legal notice to his former employer alleging that his dismissal from the company was ‘wrongful’ and ‘illegal’. Joshi along with junior fund manager Deepak Agrawal were asked to leave the fund house on May 18 on accusations of front-running and receiving kickbacks from brokers.

“We have sent a legal notice to Axis Mutual Fund for unlawful termination of our client Viresh Joshi,” Chirag M Shah, Counsel, Mansukhlal Hiralal & Co, a Mumbai-based law firm, told ET. Joshi has contested this termination by sending a notice to Axis Mutual on May 20.

“The termination of employment was without due process of law,” said a person privy to the matter. “No show cause notice was served before terminating employment and no opportunity of hearing was given to Viresh Joshi.”

In response to an email query on the legal notice, an Axis Mutual spokesperson said, “Axis AMC has already provided an update on termination of employment of Mr Viresh Joshi effective May 18 2022. Axis AMC has no further comments at this stage.”

Joshi’s employment with Axis MFwas terminated following an investigation by a forensic auditor, appointed by the AMC. The probe was conducted to ascertain whether the executives were involved in front-running, got kickbacks and executed trades that were disadvantageous to the schemes.

A letter sent to Axis Mutual’s top management raising questions about the ‘lifestyle’ of Joshi was the trigger for the investigation. His lifestyle came under scrutiny as it was speculated that he drove a premium sports car.

“Unlawful termination and allegations against Joshi have been done with an intent to make him a scapegoat and protect the real perpetrators,” said the person privy to the matter.

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