How conman tricked Yogi Adityanath’s UP government with fake Data Centre scam
In what is now being described as one of the biggest multi-level marketing frauds in recent years, the Enforcement Directorate (ED) has arrested Sukhvinder Singh Kharour, the CEO of Vuenow Group, and his wife, Dimple Kharour, for orchestrating a massive Ponzi scheme under the guise of cloud technology. The couple defrauded investors of ₹3,558 crore by selling what they called “cloud particles” and luring people into a scheme that promised high rental returns.
However, the scandal does not end at financial fraud. In a stunning revelation, it has come to light that the Yogi Adityanath-led Uttar Pradesh government had signed a Memorandum of Understanding (MoU) with the conman’s company, advertising it as a grand project that would build the "biggest data centre network in the world." What was projected as a revolutionary tech investment for Uttar Pradesh turned out to be an elaborate scam, with thousands of crores siphoned off by the fraudsters.
On November 20, 2022, the Uttar Pradesh government, in the presence of then Chief Secretary Durga Shankar Mishra, signed an MoU with Vuenow Marketing Services Ltd (VMSL) to establish 750 edge data centres across all districts of the state. The project was widely promoted as a groundbreaking initiative that would position UP as a global leader in digital infrastructure, aiding advancements in 5G, blockchain, artificial intelligence, and big data analytics. The state government proudly announced that it was building the world’s largest data centre network, a claim that now stands completely discredited.
However, what was marketed as a high-tech initiative was, in reality, a front for an elaborate Ponzi scheme. Sukhvinder Singh Kharour had no real expertise in data centres or cloud storage. Instead, he and his associates manipulated investors by selling them non-existent "cloud particles" (essentially server storage space) and promised lucrative returns through a sale-and-lease-back model. Investors were told that these "cloud particles" would be leased to major tech firms and generate high rental incomes.
The entire scheme began to unravel when complaints started pouring in from investors who were not receiving their promised returns. The ED launched a probe into Vuenow in October 2024, suspecting money laundering activities. Investigations revealed that instead of investing the money in data centres, the fraudsters were using new investors’ money to pay off older investors, a classic hallmark of a Ponzi scheme. The company was also found to have been laundering funds through a network of shell companies.
On November 24, 2024, an FIR was filed at Sector-58 police station in Noida against Vuenow and its associated entities. ED officials then conducted searches at Vuenow’s premises in Sector-62, where the company operated from the eighth floor of IThum Tower. These raids revealed a shocking paper trail showing that despite the grand MoU with the UP government, no real infrastructure had ever been built.
As the investigation progressed, authorities issued lookout notices against Sukhvinder and Dimple, but the duo managed to escape. They went underground, reportedly taking refuge in Nepal to evade arrest. After months of tracking, intelligence agencies located them and forced them to return to India. The couple was arrested on February 28, 2025, at Delhi’s Indira Gandhi International Airport as they attempted to flee once again.
During the investigation, the ED seized assets worth hundreds of crores linked to the scam. In February, the agency attached ₹178.12 crore in properties in Punjab and confiscated 26 luxury vehicles, valued at over ₹80 crore, all purchased using money looted from investors.
Further scrutiny of Vuenow’s financial records revealed the staggering scale of the deception. The company had only 2,701 terabytes (TB) of actual storage capacity but had sold over 6.7 lakh cloud particles, vastly overstating its assets to lure investors. The fraudsters had also transferred huge sums abroad, instead of using them to build data centres.
The Yogi Adityanath government now finds itself in an embarrassing position. The much-touted MoU, which was supposed to be a game-changer for UP's digital infrastructure, has been exposed as a sham. The promise of a ₹13,500 crore investment in data centres was nothing more than a PR stunt that masked a massive financial fraud. The fact that the UP government publicly endorsed Vuenow without conducting due diligence raises serious questions about the state’s vetting process for investment projects.
The special Prevention of Money Laundering Act (PMLA) court in Jalandhar has remanded Dimple Kharour to five days of custody and Sukhvinder to ten days.
Authorities revealed that Vuenow and its subsidiaries, Zebyte Infotech Private Limited and Zebyte Rental Planet Private Limited, were involved in rotating investors’ money instead of generating actual revenue. As per officials, “The cloud sale and lease-back model was found to be non-existent, and proceeds of crime amounting to ₹3,558 crore were used for personal luxuries instead of business purposes.”
The investigation has also revealed that the fraud extended beyond Vuenow, with money being funneled into production companies controlled by Dimple Kharour, such as Avni IT Infra Ventures Ltd, Kharour Films LLP, and Fruitchaat Entertainment Pvt Ltd. None of these businesses had any connection to cloud computing, further proving that the entire enterprise was a front for siphoning money.
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BJP repealed MGNREGA as they have 'allergy' to Mahatma Gandhi’s name: CM Siddaramaiah
Bengaluru (PTI): Karnataka Chief Minister Siddaramaiah on Tuesday launched a sharp attack on the BJP-led Centre, alleging that the MGNREGA was repealed out of "allergy" to Mahatma Gandhi’s name.
He also called for sustained, people-led agitation until the law is restored and the new VB-G Ram G Act is withdrawn.
The CM alleged that the BJP "killed" Mahatma Gandhi as the RAM in the Viksit Bharat – Guarantee Rozgar and Ajivika Mission (Gramin) (VB-G RAM G) represents Nathuram Godse, the "killer" of Gandhi, and not Lord Rama.
Addressing a preparatory meeting of the Mahatma Gandhi Employment Guarantee Scheme Bachao Sangram, organised by the Congress state unit here, Siddaramaiah said the struggle must continue "until MGNREGA is reinstated and the VB-G Ram G Act is repealed," urging party workers to turn it into a mass movement from the village to the state level.
The chief minister said, "The Centre has scrapped the Mahatma Gandhi National Rural Employment Guarantee Act and brought in a new law called VB-G RAM G. Mahatma Gandhi’s name itself causes them an allergy."
He said the issue was discussed seriously at the recent All India Congress Committee (AICC) executive committee meeting, which viewed the scrapping of MGNREGA as a grave matter.
Drawing parallels with farmers’ protests in north India, Siddaramaiah said a similar sustained movement was needed to force changes in laws. He recalled that MGNREGA was enacted during Manmohan Singh’s tenure to make the right to work a basic right for the rural poor.
"Along with employment guarantee, landmark laws like the Right to Food, Right to Information, Right to Education and Forest Rights Act were introduced to address unemployment, hunger and the problems of forest dwellers," he said.
The CM noted that the scheme, which had been in force for nearly 20 years, had provided employment to 12.16 crore workers across the country, including 6.21 crore women.
Criticising the replacement of law, Siddaramaiah alleged that the Modi government had diluted workers’ rights.
"Earlier, rural workers could demand work for up to 365 days in their own villages and even approach courts if work was denied. Now, the Centre decides through notifications where people should work," he said.
Taking a swipe, he remarked, "This is not Dasharatha Ram or Sita Ram or Kaushalya Ram. This is Nathuram — the one who killed Mahatma Gandhi. Through VB-G RAM G, Gandhi is being killed once again."
Siddaramaiah also objected to the increased financial burden on states, stating that states now have to bear 40 per cent of the cost, forcing Karnataka alone to spend around Rs 2,500 crore.
"That is why we have launched the MGNREGA Bachao Andolan. It must transform into a people’s movement," he said.
Addressing the gathering, Deputy Chief Minister D K Shivakumar alleged that the Centre will decide the works and not the villages.
According to him, no state government will accept it. Even the BJP ruled states will not implement the scheme.
"Due to the VB-G RAM G, Panchayats will not be allowed to carry out works. After losing works worth Rs one crore to Rs two crore, what is left with the Panchayats," Shivakumar, who is also Congress state president, asked.
He asked his party cadres to hold meetings in every corner of the state to spread awareness about repealing the MGNREGA.
In his address, Rural Development and Panchayat Raj Minister Priyank Kharge said, the BJP hates Mahatma Gandhi so much that they abolished the law and snatched the livelihood of poor people in the rural areas.
He also preferred calling the new scheme as "VB-Gram G" and not VB-G RAM G as the BJP has called it.
"For us, the livelihood of people is important, not the name of the scheme, but the BJP wants to trap us between the names of Gandhi Ji and Ram. We should not go for that fight. You name whatever you want, but give our villagers employment. If needed, we will change the name of the scheme once our government comes to power," Kharge, son of Congress president Mallikarjun Kharge, said.
According to him, the "VB-Gram G" has been introduced to align it with PM Gati Shakti national master plan.
