Unmasking a Rs 40-Crore IPO Scam: ED Cracks Down on Financial Deception

The Enforcement Directorate uncovers a Rs 40 crore money laundering network stemming from a 2022 IPO scam led by Varanium Cloud Ltd. Promised digital projects were unexecuted and funds diverted through fraudulent methods. Over 400 cheque books and 200 SIM cards were seized, exposing a vast network of deceptive financial practices.

The Enforcement Directorate (ED) has unveiled a major money laundering operation valued at Rs 40 crore, entailing fraudulent investor schemes via a 2022 initial public offering (IPO).

Recent investigations have unveiled the presence of a broad network, using manipulated IPOs and 'mule' accounts. ED officials say 400 cheque books and 200 SIM cards were seized in connection to the 'large-scale' financial misrepresentation.

The probe focuses on Varanium Cloud Ltd., implicated for raising funds under pretenses for tech projects, which were never actualized, diverting gains through fraud.

(With inputs from agencies.)