Lucknow: The Uttar Pradesh government has cancelled a proposed ₹25,000 crore Memorandum of Understanding (MoU) signed with Bengaluru-based startup Puch AI for developing artificial intelligence infrastructure in the state, citing lack of financial credibility on the part of the firm.
In a statement issued on the official handle of InvestUP on Thursday, the government said the decision was taken after a review conducted as per standard operating procedures revealed that the company did not possess the requisite net worth or credible financial linkages to execute a project of such magnitude.
“As per standard protocols laid by the state government, the MoU signed with Puch AI on March 23, 2026, was reviewed. Necessary details were sought from the investor, but they were not provided in a timely manner. Due-diligence showed lack of net worth and credible financial linkages for the project’s scale,” the statement said.
It added that the agreement stands cancelled with immediate effect and no rights or obligations remain between the parties. The government emphasised that the move was taken in the interest of transparency and maintaining high standards of probity in governance.
CM Yogi Adityanath had on March 23 said the proposed investment would facilitate the establishment of AI Parks, large-scale data center infrastructure, AI Commons, and an AI University to the state. The AI Commons was proposed for facilitating governance applications while the AI university was aimed at skilling youth.
{{/usCountry}}CM Yogi Adityanath had on March 23 said the proposed investment would facilitate the establishment of AI Parks, large-scale data center infrastructure, AI Commons, and an AI University to the state. The AI Commons was proposed for facilitating governance applications while the AI university was aimed at skilling youth.
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