Punjab Couple Arrested for Allegedly Earning Rs 3,500 Crore by Selling Cloud Space

NEW DELHI: A couple from Punjab arrested by the Enforcement Directorate (ED) on Friday has been identified as the masterminds behind a multi-level marketing scam, which involved defrauding investors by promising significant rental income on purchased cloud space and leasing it back. They have been placed under ED custody.
On Saturday, a PMLA special court in Jalandhar ordered that Sukhvinder Singh Kharour be held for 10 days and Dimple Kharour for five days in ED custody. The couple is accused of gathering more than Rs 3,500 crore over the last 2-3 years and misappropriating the “proceeds of crime”.
Look out notices were issued after the couple went into hiding. Previously, the ED had seized at least 26 luxury vehicles valued at Rs 80 crore that belonged to them. Additionally, the ED has also attached various assets in Punjab, summing up to Rs 178 crore.
“The cloud sale and leaseback model was discovered to be non-existent, designed to defraud investors. The identified proceeds of crime amounting to Rs 3,558 crore from illicit activities were funneled by VMSL (Vuenow Marketing Services Ltd) and affiliated companies into commissions for channel partners, procurement of luxury vehicles, gold and diamonds, laundering hundreds of crores through shell companies, and reinvestment in real estate,” the ED revealed.
The couple established various shell companies to divert the proceeds of crime. Substantial funds were also channeled into bank accounts owned by Dimple and film production entities she controls, such as Kharour Films LLP, Fruitchaat Entertainment Pvt, and Avni ITInfra Ventures Ltd, where she holds a director position. However, these entities reportedly bear no connection to the cloud particle business VMSL which collected vast sums from investors, according to the agency.
The ED had been tracking the high-profile couple, who evaded arrest in Punjab for an extended period despite numerous allegations of fraud and deceit. The central agency eventually lodged an FIR in Noida and, along with the assistance of Uttar Pradesh Police, issued a lookout notice. Coordination with international enforcement bodies ultimately located the couple in Nepal, from where they were brought back to India. “Sukhvinder, the CEO and founder of Vuenow Group, is labeled the ‘mastermind’ of the scam and orchestrated the ‘Cloud Particle Scam’ in collaboration with his close associates,” stated the ED.