A couple has been arrested for multi-level marketing fraud. Sukhvinder Singh Kharour, the CEO (chief executive officer) of the Vuenow Group and his wife Dimple Kharour have been apprehended by the ED (Enforcement Directorate) on charges of defrauding people by selling them “cloud particles (servers)” and then leasing them back to the investors with the promise of generating monthly rental income. ₹3,558 crores were raised through the ‘scheme’.
A special PMLA (Prevention of Money Laundering Act) court in Jalandhar has remanded them to custody. Dimple has been placed on five days of remand while Sukhvinder has been sent for ten days. The pair was arrested on 28th February at Delhi’s IGI (Indira Gandhi International) Airport as they tried to abscond. The authorities detained them by an active Look Out Circular (LoC) and then put them under arrest after acting on particular intelligence. Sukhvinder is the mastermind behind the scheme.
They went underground after lookout notices were issued against them. According to sources, the couple was eventually located in Nepal and compelled to return to India, where they were eventually caught. Last month, the ED confiscated at least 26 luxury vehicles valued at ₹80 crore that belonged to the accused. On 6th February a total of ₹178.12 crore in additional assets in Punjab were also attached by the agency and searches were carried out at locations tied to Vuenow Marketing Services Ltd and its associates on 26th November, 17th January and 24th February.
“The ED investigation revealed that Zebyte Infotech Private Limited (ZIPL) and Zebyte Rental Planet Private Limited, affiliates of Vuenow Group, were rotating the money of new investors to the old ones in the guise of sub-lease rent of cloud particles. As such, no rental income was generated from any clients who purported to have taken cloud particles on rent,” an official revealed. Arif Nisar, another important perpetrator was captured on 24th February during the investigation of Delhi property. “Arif Nisar, who holds 75% shareholding in ZIPL, is a mentor and founder of VMSL group and a close associate of Sukhvinder Singh Kharour,” an official informed.
A multifaceted plan to defraud crores
The culprits signed a Memorandum of Understanding (MOU) with the Uttar Pradesh government on 20th November 2022 to establish 750 edge data centres in all the districts of the state, in the presence of the then Chief Secretary Durga Shankar Mishra. On 24th November 2024, the ED submitted a report on this case at the Sector-58 police station. The Chief Secretary had declared that the state would construct the largest network of such data centres in the world.
The creation of these data centres was to facilitate the groundwork for the future implementation of 5G networks, blockchain technology, artificial intelligence and big data analytics. Vuenow Marketing Services Ltd was located in Sector-62 on the eighth story of ITham Tower. After a company investigation, a report was filed on the matter. Vuenow, Zebyte Infotech Private Limited, Zebyte Rental Planet Private Limited and other promoters of the firm were also named in this case.
A data centre construction project was initiated by the corporation, per the officials involved in the issue. Moreover, 750 data centres meant an investment to the tune of ₹13500 crore. The probe was initiated by ED in October of last year while the case was launched in November. According to the inquiry, Vuenow made over ₹533 crores between 2016 and 2023. Two company-related accounts containing ₹2,236 crores were also discovered by the agency. The money was taken from different people by selling them cloud particles. One cloud particle was priced at almost ₹41,000.
The company had a capacity of only 2,701 terabytes (TB) or cloud particles (servers). However, the two details that the investigating team obtained showed that over 1 lakh 29 thousand particles were sold in one place and 5 lakh 42 thousand particles were sold based on bank details. The company was then believed to be using a sale and lease back approach, and customers were being tricked under the guise of investment. This involved the transfer of funds from the original company to other businesses. All the facts were looked into after the deception came to light.
Sukhwinder deceived investors by using a fictitious sale and lease-back scheme based on the memorandum of understanding that was signed with the state government. He promised to lease out the data centre’s storage capacity in parts. He received investments totalling thousands of crores of rupees as a result. Nevertheless, the man sent the amount overseas instead of making any investment. He stole money from people under the pretext of cloud particle technology. Moreover, the status of the company was also exaggerated in papers.
Now, the government has instituted a zero-tolerance policy to avoid any mistakes. There are instructions from the highest level to examine the history of the companies that have signed investment agreements at the “Global Investor Summit.” Instructions have also been issued to cancel the MoUs if anything is found suspicious in the probe.
Money siphoned through shell entities
“The cloud sale and lease back model was found non-existent to cheat the investors. The proceeds of crime of ₹3,558 crore (ascertained so far) generated out of criminal activities were diverted by VMSL (Vuenow Marketing Services Ltd) and group companies in giving commission to channel partners, purchase of various luxurious vehicles, gold and diamonds, routing of hundreds of crores through shell entities and further investment in properties,” the agency informed.
“The underlying business of cloud particles, based on the sale-and-lease-back model (SLB model) was found substantively non-existent and grossly overstated to cheat the investors. The Proceeds of Crime (POC) amounting to ₹3,558 crore generated out of criminal activities were utilised for other than business purposes,” it further disclosed.
Several shell corporations were established to redirect the staggering loot. A large amount of money was deposited into Dimple’s bank accounts and her-controlled production firms including Avni IT Infra Ventures Ltd, Kharour Films LLP and Fruitchaat Entertainment Pvt. ED explained that VMSL’s cloud particle business, which was utilized to attract investors had nothing to do with these businesses.
The ED was searching for the powerful couple who had escaped arrest in Punjab for a long time despite multiple allegations of fraud and cheating. A First Information Report filed at Gautam Budh Nagar (Noida) in Uttar Pradesh served as the foundation for the investigation into the money laundering aspect of the crime.
With the assistance of the Uttar Pradesh Police, the central agency issued a lookout notice and subsequently filed a FIR (First Information Report) in Noida. Officials worked with foreign law enforcement to track down the offenders in Nepal before they were deported to India. “Sukhvinder, CEO and founder of Vuenow Group is the mastermind of the fraud who in connivance with his close aides orchestrated the cloud particle scam,” ED highlighted. The accused are now under interrogation.
How UP business summit is maligned after arrest of the fraud
Although there is no denying that the massive fraud was the result of significant negligence on the part of Uttar Pradesh government officials, it would be unfair to portray all MOUs as scams because they are a significant source of investment that supports the progress of the state. Likewise, it would be equally wrong to project such business conferences, intended to generate revenue, as otherwise.
However, the other side spotted an excellent opportunity to criticize the government and portray Uttar Pradesh’s global business summits as venues for such instances because the occurrence took place in a state that was ruled by the Bharatiya Janata Party (BJP) and specifically under Chief Minister Yogi Adityanath. Piyush Rai wrote, “This is the reality of multi-million dollar MoUs signed at gala events in global investment summits.” Rai left to mention, nonetheless, that the government’s prompt action also brought the fraud to light and the accused have already been arrested.
This is the reality of multi million dollar MoUs signed at gala events in global investment summits.
— Piyush Rai (@Benarasiyaa) March 4, 2025
2022: UP govt claiming to have signed MoU to set up World's biggest Data centre
2025: How a man conned the entire UP govt in signing an MoU. Was ready to flee country with… pic.twitter.com/MQNnLYjEEu
Tarun Gautuam, another BJP detractor, gleefully attacked the Yogi administration, referring to them as clowns who fell for Sukhvinder Kharour’s scam and lost crores of rupees.
In 2022, Yogi govt signed a 13,500 cr ₹ MOU to establish data centers.
— Tarun Gautam (@TARUNspeakss) March 4, 2025
UP govt claimed that UP will have World's biggest data network
Turned out, it was a scam and UP's Babus didn't run a proper background check
That scammer collected 3500cr & has been arrested now.🤡
A netizen repeated Piyush Rai’s statement, casting aspersions on the business summits organised by the Uttar Pradesh government.
This is the reality of multi million dollar MoUs signed at gala events in global investment summits. 2022: UP govt claiming to have signed MoU to set up World biggest Data centre 2025: How a man conned the entire UP govt in signing an MoU. Was ready to flee country with 3500 Cr pic.twitter.com/HE6rKSPb6b
— Sachin (@Sachin54620442) March 4, 2025
The fact that the government’s efforts exposed the scam and media outlets have been regularly reporting on the issue was conveniently overlooked by another individual who complained about the absence of a CAG (Comptroller and Auditor General of India) report and media coverage regarding the matter.
UP govt signed MoU with a fake company for establishing data centres causing loss of ₹3558 cr to public money.
— Sudhanshu (@Sudshek) March 5, 2025
No tv media news, no CAG report. pic.twitter.com/6DZIb5oIKz
A user mocked Uttar Pradesh as “the next model state” for the fraud.
UP the next model state
— সত্যান্বেষী (@satyanewshi) March 4, 2025
In 2022, UP govt signed a Rs 13,500 crore MoU for data centres across every district with a Company named “Vuenow” . ED has now arrested the company officials & revealed that it was Ponzi scam, duping investors of Rs 3,558 cr. pic.twitter.com/LMlgOSL5a8
Notably, the Yogi government signed MoUs for investment purposes worth Rs 33.50 lakh crore during the three-day conference in 2023. “At the summit 19,058 Memorandum of Understanding were signed and implementation of 14,000 is under way. Of the Rs 10 lakh crore worth of proposals on which work is on, projects worth Rs 2.6 lakh crore have already started commercial production,” UP Industrial Development, Export Promotion, NRI, Investment Promotion Minister Nand Gopal Gupta Nandi unveiled during January 2025.
Urvasi Infratech (Rs 3,400 crore), AB Mauri (Rs 1,677 crore), J K Cement (Rs 1,200 crore), Wonder Cement (Rs 834 crore), Berger Paints (Rs 800 crore), and Moon Beverages (Rs 756 crore) are a few of the large enterprises that have commenced commercial operations.
According to him, the Uttar Pradesh Defence Industrial Corridor (UPDIC) is intended to boost the aerospace industry and India’s defence capabilities. It has drawn investment bids totalling Rs 28,175.58 crore as of this January. Additionally, the state is developing a strategy to increase defence industry investment. He pointed out, “Uttar Pradesh has become the third-largest economy in India, contributing over 8 per cent to the nation’s GDP. Uttar Pradesh’s economy is growing at 11 per cent annually, among the highest in the country.”
The developments unequivocally demonstrate how important these conferences and the MOUs they deliver are to the advancement of any state. The usual suspects, however, don’t allow facts to impede their narrative. The Vuenow Group scam is undoubtedly the responsibility of the Uttar Pradesh government, but their immediate action cannot be ignored either and more importantly, the matter cannot be escalated to damage a significant source of investment merely for the sake of petty politics.
