Mumbai: The Enforcement Directorate (ED) conducted extensive searches across 11 locations, including the corporate office of M/s Vuenow Infotech Pvt. Ltd. on Andheri-Kurla Road, Mumbai, as well as in Gurugram, Panchkula, Jind (Haryana), and Mohali (Punjab) on Friday, January 17. The operation, conducted under the Prevention of Money Laundering Act (PMLA), targeted various entities allegedly connected to the "Cloud Particle Scam."

In an official statement, the ED confirmed that the operations targeted a number of business and residential properties connected to M/s Vuenow Infotech Pvt. Ltd., along with other companies, including M/s Big Boy Toyz, M/s Mandeshi Foods Pvt. Ltd., M/s Planckdot Pvt. Ltd., M/s Bytecanvass LLP, M/s Skyverse, and M/s Skylink Network. The investigation primarily revolves around M/s Vuenow Marketing Services Ltd. (VMSL), a significant player in the alleged money laundering network.

During the search operation, ED officials seized several luxury vehicles, cash amounting to Rs 3 lakh, as well as incriminating documents, records, and digital devices. The ED has yet to disclose the full details of the materials seized, but the items are expected to play a crucial role in furthering the investigation.

Sources indicate that the ED's Mumbai-based team was primarily focused on locating Rahul Bhargav, the Chief Development and Marketing Officer of M/s Vuenow Infotech Pvt. Ltd. and M/s Vuenow Marketing Services Pvt. Ltd. (VMSL). Bhargav oversees the company’s marketing and business development efforts. Also under scrutiny was Yashwant Rane, a seasoned real estate development professional and Director at Vuenow Group. Rane has played a key role in executing the company’s projects. However, both Bhargav and Rane were not present at the office during the search and remained unreachable.

The "Cloud Particle Scam" involves allegations of large-scale fraud disguised as technology-driven investments. The Vuenow Group is accused of allegedly conducting unauthorized foreign remittances and allegedly defrauding investors by selling "cloud particles" (cloud storage units) and leasing them back with the assurance of providing rental income to investors.

The ED's investigation was initiated following suspicions of violations under the Foreign Exchange Management Act (FEMA). As a part of the probe, the agency conducted searches at 14 locations across India, leading to the seizure of foreign currency, digital devices, and other incriminating documents."

The investigation has since expanded. Further details have revealed additional financial irregularities, including the alleged diversion of funds through shell companies, falsification of financial statements, and the use of untraceable digital payment channels to launder proceeds. The ED is working to trace the flow of illicit funds and identify all parties allegedly involved."

Further details have led to the filing of a First Information Report (FIR) under the BNS 2023, with police in Gautam Buddh Nagar (Noida) registering the case based on the ED’s findings.

The FIR accuses Vuenow Infotech and its affiliated entities—Vuenow Marketing Services Pvt. Ltd., Zebyte Infotech Pvt. Ltd., and Zebyte Rental Planet Pvt. Ltd.—of engaging in allegedly fraudulent activities under the guise of offering cloud-based investment opportunities.

The investigation revealed that M/s VMSL, under its MyCloudParticle brand, was allegedly offering various customers an investment opportunity. Investors were induced to invest by purchasing Data Centre Assets or Cloud Particle servers through a Sale and Lease Back model. Under this scheme, investors would purchase cloud particles (storage space in the cloud) and lease them back to M/s ZRPPL and M/s ZIPL, affiliates of M/s VMSL, for a guaranteed rental return of up to 40 percent per annum over 10 years. However, the ED’s physical verification of data centers revealed that the infrastructure necessary to fulfill these promises was lacking.