The Uttar Pradesh government has decided to cancel the Memorandum of Understanding (MoU) with Puch AI in the pursuit of transparency and upholding the highest standards of governance. Invest UP, in a recent statement, mentioned that the MoU signed with Puch AI on March 23, 2026, underwent a review process. Despite requests for essential details following state protocols, the investor failed to provide them promptly, revealing a lack of net worth and credible financial connections for the project’s magnitude. As a result, on the State Government’s directive, the MoU stands nullified effective immediately, with no remaining rights or obligations.
The cancellation of the MoU underscores the government’s commitment to transparency and the utmost integrity in governance, principles that form the foundation of the Uttar Pradesh administration. Invest UP had initially entered into the MoU with Puch AI to establish an AI park within the state, with a proposed investment amounting to Rs 25,000 crore. In response to mounting queries regarding the financial and operational capabilities of startup Puch AI, the Uttar Pradesh government issued a comprehensive clarification regarding the MoU signed with Invest UP.
Chief Minister Yogi Adityanath clarified through a social media post that such MoUs represent preliminary agreements and do not assure final approval or project execution. Notably, Puch AI, a relatively young startup reportedly around a year old, with an annual revenue below Rs 50 lakh, has faced scrutiny over its capacity to undertake a project of significant scale. The Chief Minister emphasized that an MoU facilitated by Invest UP primarily serves as an initial step for exploring potential opportunities in emerging sectors like AI.
