Uttarakhand LUCC Chit Fund Scam: CBI Arrests Two Alleged Masterminds From Mumbai

The Central Bureau of Investigation (CBI) has arrested two alleged masterminds of the Rs 800-crore Loni Urban Multi State Credit and Thrift Co-operative Society (LUCC) chit fund scam from Mumbai, officials confirmed on Tuesday. The accused, Kishan Jain and Pankaj Jain, had been on the run since the Uttarakhand State Police registered 18 FIRs against them for allegedly defrauding over one lakh investors with promises of high returns.

The investigation, which was handed over to the CBI by the Uttarakhand High Court in November last year, culminated in the tracking and arrest of the duo on Monday. Reported PTI, the case revolves around allegations of illegal collection of public deposits, cheating, criminal breach of trust, criminal conspiracy, and the operation of unregulated deposit schemes that affected a large number of depositors across multiple districts in Uttarakhand.

The central agency's probe indicates that Kishan and Pankaj Jain are among the primary accused. According to PTI, the two men played an active and significant role in the collection, handling, diversion, and misappropriation of funds. Evidence points to their involvement in a larger conspiracy regarding the routing and utilisation of funds mobilised from lakhs of investors.

A CBI spokesperson stated that the arrests followed sustained and intensive efforts by the investigating team. "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," the statement said.

The spokesperson further detailed the impact on the public. "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) were lured to invest in various unregulated deposit schemes of LUCC," the spokesperson said. The total investment made by these depositors is estimated to be approximately Rs 800 crore.

Following their arrest, the agency obtained a transit remand to produce both accused before the Banning of Unregulated Deposit Schemes (BUDS) Act Court in Dehradun.

This development follows the earlier arrest of five individuals on May 12th and 13th, including three senior cooperative promoters of LUCC who managed chest branches and actively collected public deposits in Uttarakhand. "All these five accused persons are presently in judicial custody at Sudhowala Jail in Dehradun," the CBI Spokesperson said.

PTI reported that the CBI has also identified several immovable properties acquired by the accused using the proceeds of crime. The agency has shared these records with the Secretary of Finance for the Uttarakhand government, requesting that the properties be frozen and subsequently distributed to the victims under the provisions of the BUDS Act.

(With inputs from PTI)