In a significant relief move for more than 1.5 lakh investors affected by the Loni Urban Multi-State Credit & Thrift Co-operative Society (LUCC) scam, the Uttarakhand government has decided to launch a dedicated integrated online portal to enable victims to submit their complaints digitally.
The decision follows a formal request from the Central Bureau of Investigation (CBI) dated January 14, after which Secretary Dilip Jawalkar directed the State Cooperation Department to immediately initiate the development of the portal. The platform is expected to streamline grievance registration and assist investigators in accurately assessing the scale of financial losses.
LUCC management is accused of defrauding investors of nearly ₹800 crore by offering unusually high returns on fixed deposits and recurring deposit schemes. The cooperative society operated through 35 branches across Uttarakhand and employed hundreds of agents who mobilised small savings, primarily from rural and semi-urban populations.
The scam surfaced in June 2024, when all LUCC offices shut down abruptly, triggering panic among depositors. The first FIR was registered at Kotdwar police station on the complaint of Tripti Negi, followed by a surge in similar complaints across districts. To date, 18 FIRs have been registered in six districts, including Dehradun and Haridwar, and over 12 officials and agents have been arrested.
Initially, the investigation was conducted by the state CID. However, following a Public Interest Litigation (PIL) filed by Ashutosh Negi, later merged with another petition by Vishal Chhetri, the Uttarakhand High Court intervened and transferred the probe to the CBI in July. On November 27, the CBI registered a consolidated FIR, subsuming all 17 earlier cases.
The investigation has since revealed that the alleged fraud extended beyond cooperative banking operations. Film actor Aayush Shah, speaking to TNIE, alleged that the primary accused — Shabab Hussain (also known as Shabab Hashim), along with Bishwajit Badal Ghosh and Piyalee Shyamlendu Chatterjee, executed a parallel investment fraud under the banner of Myfledge Private Limited.
“They induced me and my sister, Mausam Shah, to invest ₹4.44 crore by presenting forged property documents, fabricated bank statements, and falsified income tax returns,” Shah alleged.
Sources indicate that the main accused remain absconding, despite repeated summons from investigating agencies. With their continued non-appearance, victims have now approached the court seeking non-bailable arrest warrants, which actor Aayush Shah is expected to formally pursue on February 4, 2026.
Officials believe the proposed online portal will play a crucial role in helping the CBI determine the total financial liability, trace fund diversion, and identify all affected investors across Uttarakhand.