Lucknow, March 26: The Uttar Pradesh government has annulled its memorandum of understanding (MoU) with Panch AI, prioritizing transparency and good governance. The investment promotion agency, Invest UP, announced the decision on social media platform X, stating that the MoU, signed on March 23, underwent a standard review process.
According to the agency, necessary documents and information were requested from the investor, but the company failed to provide the required details in a timely manner. During the due diligence process, it was revealed that the company lacked a credible financial basis suitable for such a large project.
Following these findings, the state government directed an immediate cancellation of the MoU. The agency clarified that no rights or obligations related to this agreement remain.
It is noteworthy that Invest UP had signed this MoU with Panch AI to establish an AI park in the state with an investment of approximately ₹25,000 crore. Concerns had previously been raised regarding the financial and operational capabilities of this startup, which reportedly has an annual income of less than ₹5 million.
Chief Minister Yogi Adityanath had also clarified that the MoU signed through Invest UP is merely a preliminary step and does not guarantee final approval or implementation of any project. He emphasized that the MoU serves as an initial step in exploring possibilities, followed by detailed investigations and evaluations.