On October 29, 2025, ED had raided several locations in Mumbai under the Prevention of Money Laundering Act (PMLA), 2002. This action is related to the ongoing investigation against Varanium Cloud Ltd., its promoter Harshvardhan Sable and other companies associated with them.
The investigating agency had received credible information that large scale manipulation of financial records, fake transactions and illegal money laundering (Proceeds of Crime) were being carried out by these companies. A search operation was conducted on this basis.
Fake transaction by issuing IPO worth Rs 40 crore
Investigation revealed that Varanium Cloud Limited and its affiliates had issued an IPO of about Rs 40 crore in September 2022, in which it was claimed that this amount would be invested in setting up edge data centers and digital learning centers in small cities.
The company described itself as a fast-growing tech company in the field of digital media, blockchain and education technology (EdTech) and also used the names of many renowned industry groups and media organizations in the promotion of the IPO. However, the ED investigation revealed that none of the projects were implemented on ground and the funds raised from the IPO were diverted to inflate the market value through fraudulent transactions and circular fund movements.
Cheating investors by selling huge amounts of shares
The prices of the company’s shares were artificially increased in the stock market and later investors were cheated by selling huge quantities of shares. It turned out to be a case of a classic ‘pump and dump scheme’. Documents found during the search also revealed that a large-scale mule bank account network was being run from Mumbai.
In these, accounts were opened with the help of fake KYC documents and dummy SIM cards. During the investigation, more than 400 checkbooks, more than 200 SIM cards and 110 dual SIM mobile phones were recovered, which were being used for OTP and bank transactions.
Fake identities through ‘drawer companies’
Through these accounts, money was being routed through more than 150 shell (fake) companies, so that its true origin could be hidden. Apart from this, laptops, hard drives and other electronic devices have also been seized, in which many important digital evidences have been found.
According to the ED, this entire network was being operated from some small rooms, from where the earnings of common people were being defrauded by using fake identities, fake bank accounts and proxy communication channels through so-called ‘drawer companies’. The Enforcement Directorate said that several other individuals and institutions have also been identified, whose role is under investigation.
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