Axis Mutual Funds employee sues Company for wrong termination, claims 54 crore damages

Axis Mutual Funds employee sues Company for wrong termination, claims 54 crore damages.

The Company has appointed two agencies to investigate the front-running transactions.

A former dealer and fund manager at Axis Mutual Funds, Mr. Viresh Joshi sued the Company for wrongful termination and prayed for damages of Rs. 54 Crores, over and above Rs. 26.5 Lakhs compensation from the Company.

In his petition before the Court, Mr. Joshi has alleged that the termination is null and void, and therefore has no legal binding. It was additionally stated that no show cause notice was issued and no opportunity for a hearing was given.

The issue arose on 18 May when Mr. Joshi was terminated due to alleged irregularities. However, no reason was cited by the Company. The Company has stated that the said irregularities involved several crores through front-running transactions on his account.

The lawsuit was instituted after a legal notice was sent by Mr. Joshi seeking the reasons for his termination. However, the Company did not disclose the nature of wrongdoings alleged to Joshi but has stated that there have been alleged violations of securities law.

"Further to our investigation, his conduct and following the decision to suspend him, the employment of Viresh Joshi (Chief Trader & Fund Manager) with Axis AMC has been terminated with effect from May 18, 2022, and he will no longer have any association with Axis AMC and Axis Mutual Fund. Accordingly, Viresh Joshi ceases to be a key person of Axis AMC," the Company said in its statement.

The matter is listed for hearing next week.