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Uttar Pradesh Cancels Rs 25,000 Crore Puch AI MoU After Due Diligence

A state review concluded the startup lacked the financial capacity required for the promised buildout.

Overview

  • Invest UP announced Thursday that the MoU is cancelled with immediate effect, leaving no rights or obligations between the parties.
  • Officials said the review found inadequate net worth and no credible financial linkages for a project of this size, and that the firm missed the deadline to furnish required documents.
  • The agreement, announced Monday, was a non-binding signal of intent to build AI parks, data centres, an AI commons for public access, and an AI university in the state.
  • Puch AI co-founder Siddharth Bhatia said the proposal was a public‑private partnership with no cost to taxpayers and disputed revenue figures circulating online.
  • Opposition leaders called for probes into similar deals, and sources said the chief minister directed stricter pre‑MoU verification and closer monitoring of social media to prevent repeat lapses.