UP Scraps Rs 25,000 Crore MoU With Puch AI After Due Diligence Flags Financial Red Flags

The Uttar Pradesh government has cancelled a ₹25,000 crore Memorandum of Understanding (MoU) signed with Puch AI after a review found that the company lacked sufficient financial strength and credible funding linkages. The decision was taken following due diligence conducted as part of standard government procedures.

Officials stated that the agreement, which had been signed on March 23, was subjected to a routine evaluation process to verify the investor’s credentials and financial capacity. During this review, authorities sought additional documentation from the company to support its proposal and financial standing.

According to a government statement, the firm failed to provide the required details within the stipulated time frame. The assessment further revealed that the company did not possess adequate net worth to support a project of such scale and lacked verifiable financial partnerships, prompting the government to scrap the agreement.

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Earlier, Chief Minister Yogi Adityanath had clarified that the MoU was only a preliminary understanding and did not constitute a final commitment by the state. His remarks came amid scrutiny and questions raised over the scale and feasibility of the proposed investment.

The controversy surrounding the agreement had gained attention after a social media post highlighted concerns regarding the credibility of the company and the size of the proposed deal. This led to increased public and administrative scrutiny of the MoU and its underlying details.

With the cancellation, the state government has reiterated its commitment to following strict due diligence norms before entering into large-scale investment agreements. Officials indicated that ensuring transparency and financial credibility remains a priority in attracting sustainable and reliable investments to the state.

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