Investigations revealed that VMSL, in collaboration with associated entities, enticed investors through a deceptive sale and lease-back (SLB) model. Investors were persuaded to buy cloud particles, which were then ostensibly leased back to end-users, offering returns as high as 40% per annum. However, the ED's physical verification of VMSL's data centers uncovered a stark absence of the necessary infrastructure to support such services, indicating that the cloud particles sold were fictitious.
The ED initiated its probe following an FIR registered by the Gautam Buddh Nagar Police in Noida under various sections in 2023. This action was based on information shared by the ED under Section 66(2) of the Prevention of Money Laundering Act (PMLA). Subsequently, the ED conducted search operations at multiple locations, including Gurugram, Panchkula, Jind, Mohali, and Mumbai. These raids targeted premises linked to VMSL and its associated entities, resulting in the seizure of luxury vehicles, ₹3 lakh in cash, incriminating documents, records, and digital devices.
Further investigations uncovered that the proceeds from this fraudulent scheme were funneled through shell entities, with funds amounting to hundreds of crores being diverted. The ill-gotten gains were utilized to acquire luxury vehicles and invest in properties, showcasing the extensive reach of the scam.
In a bid to attract unsuspecting investors, VMSL established lavish offices where they promoted the purchase of cloud particles by offering lucrative returns through various schemes. This facade convinced many to invest, unaware of the non-existent infrastructure backing their investments.
The ED's investigation also highlighted irregular and unauthorized foreign remittances by the Vuenow Group companies. During the probe, searches were conducted at 14 locations across the country, leading to the seizure of Indian currency worth ₹30.50 lakh, 6,410 euros, 3,062 US dollars, 5 Singapore dollars, and 2,750 Swiss francs. Digital devices and various incriminating documents were also confiscated. Notably, the key promoters of the Vuenow Group did not participate in the search proceedings.