Overview
- Searches were conducted on October 29 at multiple Mumbai locations under the PMLA targeting Varanium Cloud Ltd, promoter Harshavardhan Sabale, and associated entities.
- Investigators say the September 2022 IPO raised about Rs 40 crore for edge data centres and digital learning hubs that were not built, with proceeds diverted through circular transactions.
- Seized material includes over 400 cheque books tied to mule accounts, more than 200 SIM cards housed in 100+ dual‑SIM phones, and electronic devices such as laptops and hard drives.
- Preliminary findings indicate forged KYC, dummy SIMs, and layering of funds through more than 150 shell or “drawer” companies to conceal the money trail.
- ED alleges trading showed a pump‑and‑dump pattern that harmed investors, has identified additional connected persons, and signals more forensic work with further seizures and possible arrests expected.