Written by Mohamed ThaverMumbai | November 5, 2025 12:29 AM IST 2 min readThese accounts were used for layering and routing funds through over 150 shell and dummy companies, concealing the origin of illicit money. Other electronic devices such as Laptops, Hardrives, etc. containing incriminating evidence has also been recovered from the search proceedings, ED said.THE Directorate of Enforcement (ED) Tuesday said that it conducted search operations on October 29 at multiple locations in Mumbai in connection with its ongoing probe against Varanium Cloud Ltd., its promoter Harshavardhan Sabale and other associated entities.The searches were undertaken based on information that allegedly indicated large-scale manipulation of financial records, circular fund movements, and suspected laundering of Proceeds of Crime.According to the agency, Varanium Cloud Ltd. and its associated companies raised about Rs 40 crore through their September 2022 IPO, claiming it would be used to set up edge data centers and digital learning centers in smaller towns.The company projected itself as a fast-growing technology firm in the fields of digital media, blockchain, and EdTech, and even invoked the names of prominent business groups and media outlets to promote the IPO, thereby gaining public trust, ED said.However, the promised projects were never executed, and the funds were diverted through false transactions and circular movements to inflate turnover and market value, an official said.Subsequent trading patterns showed artificial price escalation followed by heavy offloading of shares, consistent with a “pump and dump” scheme, where the stocks of the company were deliberately inflated through misleading claims and later dumped at high prices, duping the public and causing losses to genuine investors, the official added.Over 400 cheque books linked to such mule bank accounts and more than 200 SIM cards, contained in more than 100 dual SIM mobile phones, mostly issued in the names of persons from Mumbai, were recovered during the search, ED said.Story continues below this adThese accounts were used for layering and routing funds through over 150 shell and dummy companies, concealing the origin of illicit money. Other electronic devices such as Laptops, Hardrives, etc. containing incriminating evidence has also been recovered from the search proceedings, ED said.Stay updated with the latest - Click here to follow us on Instagram© The Indian Express Pvt LtdTags:Mumbai