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Axis MF Manager on I-T radar for Lamborghini buy, luxury flats

The fund managers will now face a tax evasion case, with the possibility of a parallel investigation into their sources of income.

Axis MF Manager on I-T radar for Lamborghini buy, luxury flats

Photo: IANS

The Income Tax Department is looking into charges of irregularities against Viresh Joshi, the former Chief Trader and Fund Manager of Axis Mutual Fund.

Joshi is accused of accepting bribes from brokers in exchange for giving mutual fund ideas.

He allegedly made a lot of money from the brokers and bought a Lamborghini and other high-end properties in Mumbai.

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Brokers were also said to have paid him on a monthly basis. Joshi is accused of investing in mutual funds by purchasing a large number of midcap and smallcap companies in order to benefit his brokers and himself.

According to reports, the Department of Information Technology has organized a team of its top officials to investigate the suspected front-running scheme and the Axis Mutual Fund. Joshi is one of about 12 fund managers on the I-T department’s radar.

On May 4, Axis Bank said that Joshi and other fund managers had been suspended for alleged front-running.

The IRS was taken aback when the accused failed to include information regarding their real estate in their tax file, which was later discovered.

In its early investigation, the Internal Revenue Service discovered that the fund managers possessed a variety of commercial and noncommercial assets that they allegedly concealed in their tax filings. They had even demonstrated that their real estate operations were not profitable.

The Internal Revenue Service discovered that the fund managers were receiving rent from their properties for which no tax was being paid.

The department is also investigating the fund managers’ sources of income and how they were able to purchase expensive apartments and other properties.

The fund managers will now face a tax evasion case, with the possibility of a parallel investigation into their sources of income.

In coming days, the I-T department could summon all of the fund managers to appear before it and furnish the documents regarding their sources of income.
(with inputs from IANS)

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