Lucknow: The Uttar Pradesh government on Thursday cancelled the MoU with Puch AI in the interest of transparency and the highest level of probity in governance.
Invest UP said in an X post that, as per standard protocols laid by the State Government, the MoU signed with Puch AI on March 23, 2026, was reviewed.
“Necessary details as per SOP were sought from the investor, but they failed to provide them in a timely manner. Due diligence showed a lack of net worth and credible financial linkages for the project’s scale. On the directions of the State Government, the MoU is cancelled with effect from today. No rights or obligations remain,” said Invest UP.
The MoU has been cancelled in the interest of transparency and the highest level of probity in governance, which are at the core of the Government of Uttar Pradesh, it added.
Invest UP had signed the MoU with Puch AI to establish an AI park in the state with a proposed investment of Rs 25,000 crore.
Earlier, the Uttar Pradesh government issued a detailed clarification regarding the Memorandum of Understanding (MoU) signed between Invest UP and startup Puch AI, following growing scrutiny over the firm’s financial and operational capacity to execute a project of significant scale.
Uttar Pradesh Chief Minister Yogi Adityanath shared a post on the social media platform X, underlining that such MoUs are only preliminary arrangements and do not guarantee final approval or the execution of projects.
The clarification comes amid discussions highlighting that Puch AI is a relatively young startup, reportedly around a year old, with an annual revenue of less than Rs 50 lakh.
Observers have questioned whether the company possesses the necessary infrastructure, experience, or financial strength to undertake large-scale commitments typically associated with state-backed investment agreements.
Addressing these concerns, the Chief Minister reiterated that an MoU signed through Invest UP serves merely as an entry point for engagement and exploration of potential opportunities in emerging sectors such as AI.
“An MoU by Invest UP is a preliminary step before detailed due diligence and project evaluation gets done,” the post stated.
(IANS)
