Noida Tech Firm Founder Refused Interim Bail In Rs 3,558 Crore Scam

The Supreme Court on Thursday refused to grant interim bail on medical grounds to the founder of a Noida tech firm, Arif Nisar, who is a key accused in a money laundering case linked to Vuenow Marketing Services over rotating money between old and new investors in the guise of sub-leasing cloud particles.

Counsel appearing for Nisar told the bench of Justice PK Mishra and Justice Manmohan that he needs an injection and a surgery to save the eyesight of his right eye. However, the top court noted that there were no such recommendations by the doctors on the need for his hospitalisation.

At this point, Nisar asked for a fresh examination by doctors, but the court refused his request.

The top court granted him the liberty to approach the high court if the doctor recommended hospitalisation.

The Enforcement Directorate (ED) arrested Nisar, a key figure in Vuenow Marketing Services Ltd, as part of a money laundering investigation linked to the company and its associated entities. The probe agency in its investigation said that Zebyte Infotech Private Limited (ZIPL) and Zebyte Rental Planet Private Limited, affiliates of Vuenow Group, were rotating the money of new investors to the old ones in the guise of sub-lease rent of cloud particles.

As such, no rental income was generated from any clients who purported to have taken cloud particles on rent, the Enforcement Directorate said.

According to the Enforcement Directorate, Nisar, who holds 75 per cent shareholding in ZIPL, is a mentor and founder of VMSL group and a close associate of Sukhvinder Singh Kharour.

Kahrour is said to be the mastermind behind this alleged scam.

The ED had also arrested Vuenow Group chief executive officer Sukhvinder Singh Kharour and his wife Dimple Kharour, who are allegedly involved in cheating people on the pretext of selling to them "cloud particles (servers)" and leasing them back on the assurance of providing monthly rental income to the investors.

The probe agency said that funds to the tune of Rs 3,558 crore were raised through the alleged scam.

What is the scam

The case stems from an allegation that promoters and directors of these firms were running a scheme in which they lured people into investing in cloud particles or servers, for which they offered guaranteed rental returns of 48 percent per annum. They allegedly told the investors they would rent out these cloud particles to clients, and the rental income would go to them.

But, it is alleged by the probe agency that there were no clients.

Instead, new investors were brought in to pay the old investors, using the bank accounts of sister firms Zebyte Rental Planet Pvt Ltd (ZRPPL) and Zebyte Infotech Pvt Ltd (ZIPL).