Lucknow: The Uttar Pradesh government has scrapped a proposal $A Rs 25,000-crore Memorandum of Understanding (MoU) has been signed with Bengaluru-based startup Puch AI to develop AI infrastructure in the state, citing lack of financial credibility on the part of the company.
In a statement issued on InvestUP’s official handle on Thursday, the government said the decision was taken after an audit conducted in accordance with standard operating procedures revealed that the company did not have the required net worth or reliable financial connections to undertake a project of this scale.
“As per standard protocols laid down by the state government, the MoU signed with Puch AI on March 23, 2026 was reviewed. Necessary details were sought from the investor, but were not provided in time. Due diligence revealed lack of net worth and reliable financial linkages for the scale of the project,” the statement said.
She added that the agreement is canceled with immediate effect and no rights or obligations remain between the two parties. The government stressed that this step was taken in the interest of transparency and maintaining high standards of integrity in governance.
CM Yogi Adityanath on March 23 said that the proposed investment will facilitate setting up of AI parks, large-scale data center infrastructure, AI Commons and AI University in the state. The AI Commons was proposed to facilitate governance applications while the AI University was aimed at training youth.
