Indian authorities raided Mumbai in Oct. 2025 over a ₹40 crore IPO fraud by Varanium Cloud, alleging funds were diverted via fake firms in a pump-and-dump scheme.

The Enforcement Directorate conducted raids in Mumbai on October 29, 2025, in connection with a suspected ₹40 crore IPO fraud by Varanium Cloud Ltd., which claimed in its 2022 offering to build data centers and digital learning hubs in smaller towns. Authorities allege the funds were never used for these projects, instead being diverted through fake transactions, circular fund movements, and shell companies to inflate the company’s value in a suspected "pump and dump" scheme. Over 400 cheque books, 200 SIM cards, and 100 dual-SIM phones linked to mule accounts with forged identities were seized, revealing a network of 150+ dummy firms used for money laundering. The investigation, ongoing under the PMLA, focuses on fraudulent financial practices and investor deception.