In a decisive move highlighting its zero-tolerance approach to opacity in investments, the Uttar Pradesh government has terminated its ₹25,000 crore Memorandum of Understanding (MoU) with startup Puch AI. The agreement, signed on March 23, 2026, faced mounting public and political scrutiny over the firm’s financial and operational credibility. According to the official statement, the state’s review mandated by standard operating protocol found that the company failed to timely furnish essential documentation and evidence of financial capacity. The government’s due diligence also revealed inadequate net worth and weak financial linkages necessary for executing a project of this magnitude. Acting to safeguard public interest and ensure probity, the state cancelled the MoU effective immediately, clarifying that no rights or obligations now remain. Officials emphasized that the action reflects Uttar Pradesh’s steadfast commitment to transparency and ethical governance in high-value investment agreements.