Exposed: Rs 40 Crore IPO Scam Operation Uncovered by ED in Mumbai with 400 Fake Bank Accounts

Nov 04, 2025 11:12 pm CST

The Enforcement Directorate has uncovered a massive Rs 40 crore IPO scam in Mumbai involving Varanium Cloud Ltd. The company fraudulently raised funds claiming to build digital learning centers but instead diverted money through a complex network of over 400 mule bank accounts and 200 SIM cards. The sophisticated "pump and dump" scheme used false promises, forged documents, and shell companies to artificially inflate stock prices before dumping shares, causing significant losses to genuine investors.