Overview
- The case is being investigated under the Prevention of Money Laundering Act against Varanium Cloud Ltd., promoter Harshavardhan Sabale, and associated entities.
- Investigators allege the September 2022 IPO raised about Rs 40 crore for promised edge data centres and digital learning hubs, but the projects were not executed and funds were diverted.
- Trading data cited by the ED shows artificial price inflation followed by heavy offloading of shares consistent with a pump‑and‑dump operation.
- Searches recovered over 400 cheque books tied to mule bank accounts, more than 200 SIM cards found in 100‑plus dual‑SIM phones, and electronic devices including laptops and hard drives.
- Preliminary findings indicate forged KYC documents and a network of mule accounts routing money through more than 150 shell and dummy companies, with additional connected persons now under scrutiny and the probe continuing.