Noida tech tycoon denied bail in ₹3,558 crore ‘cloud scam’ despite medical plea

The Supreme Court on June 12 refused interim bail to Arif Nisar, the founder of a Noida-based tech firm and a key accused in a ₹3,558 crore money laundering scam tied to a bogus cloud server investment scheme.

Nisar, who is in custody in connection with the sprawling Vuenow Marketing Services Ltd (VMSL) fraud case, had sought bail on medical grounds. His counsel told the bench comprising Justices PK Mishra and Manmohan that Nisar urgently required an injection and surgery to save the eyesight in his right eye. But the court observed there were no medical recommendations suggesting the need for hospitalization.

Rejecting his plea, the bench stated that Nisar was free to seek fresh medical evaluation or approach the high court if doctors later recommend hospitalization. The request for immediate re-examination was also turned down.

The Enforcement Directorate (ED), which arrested Nisar, accuses him of being a central figure in an elaborate Ponzi-like scheme involving fake rentals of so-called “cloud particles” – essentially digital servers – to defraud thousands of investors. According to the ED, the company lured people by promising a staggering 48% annual return on investments in cloud servers, claiming these would be sub-leased to corporate clients who would pay monthly rent.

However, the ED investigation revealed there were no real clients or rental income. Instead, the firm’s affiliated entities – Zebyte Infotech Private Limited (ZIPL) and Zebyte Rental Planet Private Limited – allegedly rotated funds from new investors to pay off earlier ones, classic hallmarks of a pyramid fraud.

Nisar, who holds a dominant 75% stake in ZIPL, is identified as the founding force behind the group and is said to have acted in close coordination with Sukhvinder Singh Kharour, described by the ED as the scam’s mastermind. Kharour and his wife Dimple, both executives at the Vuenow Group, were also arrested for allegedly duping investors through fake buy-and-lease agreements for cloud particles.

The ED pegs the total money raised through the scheme at ₹3,558 crore, calling it a highly sophisticated financial con masquerading as a technology investment opportunity.