New scam in Punjab: Company sold cloud particles, investors’ money disappeared into thin air
Mohali-based company faces money laundering investigation for duping investors .
The Directorate of Enforcement (ED) Monday unearthed a new modus operandi and initiated a money laundering investigation against Mohali-based company, Vuenow, in connection with the “cloud particle scam”. The company has its corporate office in Mohali’s Ghazipur area of Zirakpur.
As per the preliminary findings of the investigation, it has been found that more than 25,000 investors across India — the majority of them from Punjab, Haryana and Uttar Pradesh — have purchased cloud particles from Vuenow Group of Companies and so far the group has received approximately Rs 2,200 crore in lieu of sale of such cloud particles to various investors.
Their modus operandi has two stages, where first investors are lured and sold cloud particles and then the same is leased back to the end users. The investors in turn receive rentals at a high rate. Interestingly, no physical infrastructure corresponding to the rented cloud particles actually exists with the company. The investors are duped over a long period of time and it is difficult to trace, as the victims keep availing high periodic rentals on their investment in cloud particles, unaware of the fact that no such digital infrastructure actually exists.
The ED initiated an investigation based on specific intelligence gathered on two issues viz. irregular and unauthorised foreign remittances by the Vuenow Group companies and fraudulent diversion of investors’ money under the guise of renting out services of data storage.
The ED first initiated an investigation into alleged FEMA violations in connection with irregular foreign remittances. During the FEMA investigation, searches were conducted at 14 locations across the country, resulting in seizure of Indian currency worth Rs 30.50 lakh, 6410 Euros, $3062, five Singapore dollars, foreign currency worth 2750 Swiss Francs, digital devices and various incriminating documents. Significantly, the key promoters of the Vuenow Group did not join the search proceedings. The Vuenow Group was promising unrealistic returns to investors in lieu of purchase of cloud particles (servers). The returns were as high as 40% per annum. However, to provide the required number of cloud particles (servers) on sale or rent, they did not have the proportionate infrastructure. This was established during the physical verification carried out by the ED during the search of their data centres.
In order to lure the public, Vuenow had set up lavish offices where they used to convince the investors to buy data particles from them by offering lucrative returns through various schemes, thereby falling into the trap.
The ED had forwarded the information under Section 66(2) of PMLA to Gautam Buddh Nagar (Noida) Police, Uttar Pradesh, who took cognisance of the fraudulent activities and based on the said information registered an FIR under Sections 318(4), 61(2) and 316(2) of the BNS,
Accordingly, the Jalandhar ED also initiated investigation under PMLA and conducted search operations at five locations in Punjab and UP, in which various documents and records were recovered and seized. During the search, 67 bank accounts of Vuenow Group of Companies and related entities/individuals were frozen under the provisions of PMLA, 2002. The Vuenow Group of Companies challenged the ED investigation and freezing of bank accounts in Delhi and Punjab & Haryana High Court. On December 9, 2024, after hearing both the parties for about one hour, the Delhi High Court refused to grant any interim relief to the company. The ED will still investigate the matter on several aspects.
