The Enforcement Directorate (ED) raided several sites in Mumbai on October 29, targeting Varanium Cloud Ltd and its promoters. The raid followed a spike in investor complaints after the company raised about ₹40 crore through a September 2022 IPO that promised to build edge data centres and digital learning hubs in smaller towns.
Varanium Cloud presented itself as a fast‑growing tech firm in digital media, blockchain and ed‑tech. It used the names of well‑known business groups and media outlets to build trust and attract investors. Inside the company, key figures allegedly used the IPO proceeds to create a “pump and dump” scheme—artificially inflating share prices with false claims and then selling at a premium. When the promised projects never materialised, the money was redirected through fake transactions and circular fund flows to trick investors.
The ED’s search was conducted under the Prevention of Money Laundering Act (PMLA). Investigators seized evidence of a sophisticated network of mule bank accounts. Over 400 cheque books linked to these accounts and more than 200 SIM cards—hidden in around 100 dual‑SIM phones—were recovered. Many accounts used forged KYC documents and dummy SIMs, all operating from Mumbai.
Further evidence included laptops and hard drives that held records of more than 150 shell and dummy companies. These entities were part of a larger racket that used fake identities, multiple mule accounts and proxy channels to launder money and defraud the public.
The ED’s probe has identified more individuals and companies linked to the scam, and it continues to investigate the full extent of the money‑laundering scheme. Investors who may have fallen victim are urged to stay alert and report suspicious activity to authorities.
Source: ianslive
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