The Central Bureau of Investigation (CBI) has apprehended two main suspects linked to the Rs 800 crore LUCC chit fund scam that allegedly defrauded over one lakh investors in Uttarakhand. The arrested individuals, identified as Kishan Jain and Pankaj Jain (also known as Pankaj Chaudhary), were captured in Mumbai after extensive investigative work involving financial scrutiny, bank transaction analysis, oral evidence collection, and field inquiries across multiple states. This development is seen as a significant breakthrough in the investigation into the operations of Loni Urban Multi-State Credit and Thrift Co-operative Society (LUCC), accused of illicitly raising public deposits through unregulated investment schemes and diverting the funds.
According to the CBI, the arrests are a crucial advancement in the examination of LUCC’s activities. The society is accused of unlawfully amassing public deposits through unauthorized schemes, deceiving investors, and misappropriating funds. The case, initiated by the CBI’s Anti-Corruption Branch in Dehradun on November 26, 2025, following directives from the Uttarakhand High Court on September 17, 2025, involves various legal provisions such as the IPC, Bharatiya Nyaya Sanhita (BNS), Uttarakhand Protection of Interests of Depositors Act (UPID Act), and the Banning of Unregulated Deposit Schemes (BUDS) Act.
The CBI estimates that LUCC garnered deposits amounting to nearly Rs 800 crore from over one lakh investors in multiple Uttarakhand districts. The arrested duo, considered principal conspirators, allegedly played pivotal roles in the management, diversion, and misappropriation of funds acquired through the schemes. Investigations suggest their involvement in the routing and utilization of funds collected from numerous investors. Following the acquisition of transit remand, the accused will be presented before the designated BUDS Act Court in Dehradun.
Earlier this year, the CBI had arrested five individuals, including three senior cooperative promoters of LUCC, on May 12 and 13. Presently, all five are in judicial custody at Sudhowala Jail in Dehradun. The agency has also identified several immovable properties allegedly procured using illicit funds and has urged the Uttarakhand government’s Finance Department to freeze these assets and take steps to compensate victims under the BUDS Act. Investigations into the case are ongoing.
