The Directorate of Enforcement conducted search operations on October 29 at multiple locations in Mumabi in an ongoing probe against the Varanium Cloud Ltd, its promoter Harshavardhan Sabale and other associated entities, officials said on Tuesday.
Varanium Cloud and its associated companies raised about Rs 40 crore through their September 2022 IPO, claiming it would be used to set up edge data centers and digital learning centers in smaller towns, the ED said. However, the promised projects were never executed, and the funds were diverted through false transactions and circular movements to inflate turnover and market value, ED officials said.
