The Enforcement Directorate has uncovered a private firm that committed fraud by allegedly selling ‘cloud particles’ to people and leasing them back.
According to the Enforcement Directorate, a private company and its affiliates have allegedly discovered a new method of fraud by selling “cloud particles (servers)” to individuals and then leasing them back with the promise of paying investors’ rent.
In a case involving Vuenow Marketing Services Limited, its affiliated companies, and others under the Prevention of Money Laundering Act (PMLA), the Central agency searched five locations in Mohali, Punjab, and Noida, Uttar Pradesh, on November 26. To protect the interests of thousands of investors, it has frozen 67 bank accounts belonging to questionable organizations and individuals.
Over 25,000 investors allegedly purchased “cloud particles,” according to the ED’s preliminary investigations, and the group has so far earned almost ₹2,200 crore in exchange for the transactions.
The agency asserts that Vuenow Marketing Services, in collusion with Vuenow Infotech Private Limited, Zebyte Infotech Private Limited, and Zebyte Rental Planet Private Limited, persuaded individuals to purchase “cloud particles” and lease them back with the assurance of substantial profits by leasing out the data storage services to third parties.
Aside from the potential for cheating, the ED had first opened an investigation under the Foreign Exchange Management Act (FEMA) in response to information on the group’s alleged irregular and unauthorized foreign remittances. It conducted searches at 14 sites last month and found ₹30.50 lakh in cash, documents, and digital devices that were used to exchange foreign currencies.
Aside from the potential for cheating, the ED had first opened an investigation under the Foreign Exchange Management Act (FEMA) in response to information on the group’s alleged irregular and unauthorized foreign remittances. It conducted searches at 14 sites last month and found ₹30.50 lakh in cash, documents, and digital devices that were used to exchange foreign currencies.
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