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ED Alleges Rs 40-Crore IPO Pump-and-Dump at Varanium Cloud After Mumbai Raids

Forensic analysis of seized records continues with more seizures and possible arrests expected.

Overview

  • The Enforcement Directorate said it searched multiple locations in Mumbai on October 29 under the PMLA in a probe into Varanium Cloud Ltd., promoter Harshavardhan Sabale, and linked entities.
  • Investigators say the firm raised about Rs 40 crore in a September 2022 IPO for edge data centres and digital learning centres that were not executed.
  • Officials reported seizing over 400 cheque books tied to mule accounts, more than 200 SIM cards in 100-plus dual-SIM phones, and laptops and hard drives.
  • The probe alleges a network of forged KYC and dummy SIMs used to operate mule bank accounts and to route funds through more than 150 shell or drawer companies.
  • Trading patterns cited by the ED indicate an artificial price run-up followed by heavy offloading consistent with a pump-and-dump scheme, and additional persons and entities have been placed under scrutiny.