Vuenow Cloud Storage Investment Case: Punjab & Haryana HC Denies Bail To Founder Sukhwinder Kharour

The Punjab and Haryana High Court has dismissed the regular bail plea of Sukhwinder Singh Kharour, founder and CEO of the Vuenow Group, in a money laundering case linked to the group's alleged “cloud particle” investment model.

Justice Sumeet Goel noted a prima facie disparity between the cloud-storage capacity allegedly sold to investors and the actual operational capacity found during searches. The Court also noted prosecution statements indicating that rental payments to earlier investors were made from investments received from subsequent investors.

The Court observed, “The material placed on record by the respondent-ED prima facie indicates a considerable disparity between the quantum of cloud-storage capacity allegedly sold to investors and the actual operational capacity found during the course of search proceedings.”

The ED's case concerns Vuenow Marketing Services Limited, Vuenow Infotech Private Limited, Zebyte Infotech Private Limited, Zebyte Rental Planet Private Limited and other connected entities.

According to the prosecution, the companies offered purported “Cloud Particles” to investors by representing that they had cloud-storage facilities and assuring higher rental returns. The ED alleged that the actual storage capacity did not match the representations made to investors. It further alleged that funds received from one set of investors were used to make payments to others through affiliated entities.

The Court said the prosecution had attributed a specific role to Kharour in the affairs of the Vuenow Group and its related entities. He was alleged to have been involved in the formulation and implementation of the cloud-particle investment model, mobilisation of investments and subsequent movement and utilisation of funds.

The Court said the material relied upon by the prosecution included statements recorded during investigation, documentary and financial material, and transactions undertaken through entities allegedly connected with the main accused. It held that the evidentiary value of this material would have to be determined at trial.

Kharour was arrested on February 28, 2025, and the prosecution complaint was filed on April 24, 2025. The ED has alleged that Kharour received ₹21.11 crore from Vuenow Marketing Services Limited and Vuenow Infotech Private Limited between 2019 and 2024.

The prosecution complaint cites 52 witnesses, with key witnesses yet to be examined. The Court said it could not prejudge the evidentiary value of the statements or documents at the bail stage.

The Court also held that Kharour's custody of about one year and seven months, by itself, was not sufficient to grant bail on the ground of prolonged incarceration.

It declined to grant him parity with co-accused Dimple Kharour, noting the different circumstances in which she had been granted bail.

The Court consequently dismissed the bail petition.   

For Petitioner: Senior Advocate Vikram Chaudhari and Advocate hargun Sandhu

For Respondent: Advocate Satya Pal Jain, ASGI and Akash Vashisth (ED)