UTTARAKHAND LUCC 800 CRORES CHIT FUND SCAM : 2 MASTERMINDS ARRESTED FROM MUMBAI

Face2News/Mumbai/Dehradun

In a significant development in the ongoing investigation in Uttarakhand LUCC Chit Fund Case, the Central Bureau of Investigation (CBI) has arrested two accused on Monday  at Mumbai, Maharashtra. Their arrests were made after sustained and intensive efforts by the investigating team involving analysis of voluminous financial records, examination of bank transactions, collection of oral evidence and extensive field investigation conducted across different States of the country.

In compliance of the order dated 17.09.2025 of the Hon’ble High Court of Uttarakhand at Nainital passed in WPCRL No. 1020/ 2025 and others, CBI, ACB, Dehradun had registered a case on 26.11.2025 under various sections of IPC, BNS, Uttarakhand Protection of Interests of Depositors Act (UPID Act) and Banning of Unregulated Deposits Schemes Act (BUDS Act), against various office bearers of M/s Loni Urban Multi State Credit and Thrift Co-operative Society (LUCC) and others by taking over the investigation of 18 FIRs registered by the State Police of Uttarakhand.

The case pertains to allegations of illegal collection of public deposits, cheating, criminal breach of trust, criminal conspiracy, operation of unregulated deposit schemes, misappropriation of funds etc. by LUCC, affecting a large number of depositors across multiple districts of the State of Uttarakhand.

Investigation, so far, has brought forth an unprecedented scale of victimisation of public in the state of Uttarakhand in which a very large number of investors (more than one lakh approx. investors) were lured to invest in various unregulated deposit schemes of LUCC. The total investment/ deposits made by these depositors is estimated to be approximately Rs.800 Crore.

Investigation has revealed that both these accused, who were arrested on 01.06.2026, are amongst the primary accused persons and, in conspiracy with other accused, had played active and significant role in the collection, handling, diversion and misappropriation of funds collected from depositors under various unregulated deposit schemes operated by LUCC.

Evidence gathered during investigation indicates their involvement in the larger conspiracy relating to the routing, handling and utilization of funds mobilized from lakhs of investors. After obtaining transit remand, both the accused will be produced before the Ld. BUDS Act Court at Dehradun.

The CBI had, earlier, arrested 05 accused persons on 12th and 13th May, 2026, including 03 senior Cooperative Promoters of LUCC in Uttarakhand, who had actively collected deposits from public in Uttarakhand and were managing chest branches. All these 05 accused persons are presently in judicial custody at Sudhowala Jail in Dehradun.

These arrests mark a significant milestone in the investigation by CBI in unearthing the larger conspiracy behind the illegal mobilization and diversion of public deposits. CBI has also obtained details of several immovable properties acquired by the accused from the proceeds of crime and details have been shared with the competent authority under BUDS Act i.e. Secretary Finance, Govt of Uttarakhand with a request to freeze these properties and take necessary action to distribute them to the victims under the provisions of BUDS Act. CBI is committed to complete the investigation at an early date.

Shabab Hussain, who has previously been named as an accused in the alleged LUCC scam, along with his partners Bishwajit Badal Ghosh and Piyalee Shyamlendu Chatterjee Ghosh directors of Myfledge Private Limited, an aviation training institution operating across India. The company has come under scrutiny following allegations from investors claiming financial irregularities involving significant sums of money, with multiple criminal cases reportedly ongoing. In addition, several students have lodged complaints against the institution. In a recent development, the Aerospace & Aviation Sector Skill Council (AASSC) under the National Skill Development Corporation (NSDC) is understood to have issued a legal notice to the directors of Myfledge Private Limited over the alleged unauthorized use of its branding, claiming that such representations may have misled prospective students regarding affiliations and certifications.

Further investigation is continuing.