Policy

UP Government Cancels ₹25,000 Crore MoU With Puch AI Over Financial Due Diligence Failure

Shreya R.

Uttar Pradesh cancelled its ₹25,000 crore MoU with artificial intelligence startup Puch AI just four days after signing.

Invest UP cited a critical lack of net worth, missing financial linkages, and delayed due diligence submissions as the primary reasons for termination.

The one-year-old startup faced intense public scrutiny over its actual capacity to build capital-heavy infrastructure like data centers and AI parks.

The rapid cancellation highlights a major flaw in state-level "MoU culture," where massive non-binding deals are frequently announced before basic financial vetting takes place.

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