(file photo)Uttar Pradesh Chief Minister Yogi Adityanath
| Photo Credit:
ANI
The Uttar Pradesh government has cancelled its proposed ₹25,000 crore MoU with Puch AI after due diligence flagged concerns over the start-up’s financial capacity and lack of credible backing.
In a post on X on Thursday, Invest UP said the agreement, signed on March 23, was reviewed as per State protocols, but the company failed to furnish the required details within the specified timelines. Following checks revealed insufficient net worth and weak financial linkages relative to the scale of the proposed project, prompting the government to terminate the MoU in the interest of transparency and probity.
The agreement, announced on Monday by Chief Minister Yogi Adityanath, included the development of AI parks, data centre infrastructure, AI Commons, and an AI university in the State. However, it quickly drew scrutiny from industry observers, who questioned the execution capability of the less-than-a-year-old start-up, which lacks detailed public financial disclosures. Media reports indicate the company posted revenue of about ₹42.9 lakh as of March 31, 2025.
Amid the concerns, the Chief Minister eventually clarified that the MoU—signed via Invest UP—was non-binding and exploratory in nature, with any further approvals contingent on detailed evaluation. He added that proposals failing to meet the required criteria would be terminated.
Founded in 2025, Puch AI offers a voice-first AI assistant, including a WhatsApp-based interface focused on Indic languages and regional accents. The platform provides features such as image and video generation, voice assistance, fact-checking, and multilingual support.
Published on March 27, 2026
