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What TV doesn't, print can't; we deliver.
NEW DELHI – In a significant development, the Enforcement Directorate (ED) conducted raids in Mumbai and Kolkata, seizing Rs 12.96 lakh in foreign currency and documents related to foreign bank accounts and assets. The raids are part of an ongoing investigation into FEMA violations by Virendra Joshi, who is accused of making illegal profits through front running in the stock market.
The Securities and Exchange Board of India (SEBI) had earlier accused Joshi of earning wrongful gains of Rs 30.56 crore through front running, a practice where a broker or trader executes orders on a security for their account while taking advantage of advance knowledge of pending orders from their customers. This unethical and illegal practice undermines market integrity and disadvantages other investors.
The ED’s investigation revealed that the illicit profits were used to purchase properties in the UK. During the search operations, the ED seized foreign currencies (GBP, Euro, AED) amounting to Rs 12.96 lakh, along with incriminating documents related to overseas immovable properties, bank accounts, and digital devices.
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The probe into Joshi’s activities is based on an interim order passed by SEBI, which alleged that Joshi and others engaged in front running to earn wrongful gains. Joshi allegedly shared market-sensitive information in return for kickbacks from brokers in Dubai, who executed trades on his instructions. He also contacted individuals and entities in India to use their trading accounts on a rental basis.
The investigation uncovered that the illicit gains were received in cash and routed through Kolkata-based operators into the bank accounts of multiple shell entities. These entities then provided unsecured loans to Joshi, his family members, and firms beneficially owned by them.
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Preliminary findings indicate that the illegal gains were used to purchase immovable properties in the UK, with documents related to two such properties showing remittances of Rs 14 crore abroad.
Additionally, overseas entities such as M/s Vintage Capital Investment LLC in Dubai and M/s Vincent Capital Holding Limited in the UK were incorporated using these funds, with Rs 12 crore parked in their accounts. The funds were also used to form fixed deposits and purchase properties in India.
The ED’s investigation is ongoing, with further details expected to emerge as the probe continues.
