CBI arrests 2 masterminds in Uttarakhand LUCC Chit Fund scam

According to the CBI, 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 September 17, 2025 of the High Court of Uttarakhand at Nainital passed in WPCRL and others, CBI, ACB, Dehradun had registered a case on November 26, 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 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.

So far, the investigation has brought forth an unprecedented scale of victimisation of the 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 June 1, 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 the investigation indicates their involvement in the larger conspiracy relating to the routing, handling and utilisation of funds mobilised from lakhs of investors. After obtaining transit remand, both the accused will be produced before the Ld. BUDS Act Court at Dehradun.

Earlier, the CBI had arrested 05 accused persons on May 12 and 13, including 3 senior Cooperative Promoters of LUCC in Uttarakhand, who had actively collected deposits from public in Uttarakhand and were managing chest branches. All these 5 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 mobilisation 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 the 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 the BUDS Act.

CBI is committed to completing the investigation at an early date. Further investigation is continuing. (ANI)