Investigation – Major Progress Report on Uttarakhand Deposit Fraud Case-
Investigation – Depositors across Uttarakhand continue to await justice as investigators move forward in uncovering one of the state’s largest alleged financial fraud cases. In a fresh development, the Central Bureau of Investigation (CBI) has taken two more individuals into custody in connection with the LUCC deposit scheme probe. The arrests were made in Mumbai, Maharashtra, on June 1 as part of the agency’s ongoing efforts to trace the flow of funds and identify those responsible for the alleged scam.
Arrests Follow Extensive Investigation
According to officials, the latest arrests were the result of months of detailed investigation involving scrutiny of financial documents, examination of banking records, collection of witness statements, and field inquiries conducted across several states. Investigators reportedly analyzed a substantial volume of evidence to establish the roles of the accused in the operation and management of the alleged deposit schemes.
Background of the Case
The investigation stems from directions issued by the Uttarakhand High Court at Nainital in September 2025. Acting on those instructions, the CBI’s Anti-Corruption Branch in Dehradun formally registered a case in November 2025. The agency assumed responsibility for investigating 18 separate FIRs that had initially been registered by Uttarakhand Police against office bearers and associates of Loni Urban Multi State Credit and Thrift Co-operative Society (LUCC).
The case has been registered under provisions of the Indian Penal Code, Bharatiya Nyaya Sanhita, the Uttarakhand Protection of Interests of Depositors Act, and the Banning of Unregulated Deposit Schemes Act.
Allegations of Large-Scale Financial Misconduct
Investigators allege that LUCC collected money from members of the public through unauthorized deposit schemes and subsequently misused those funds. The accusations include cheating, criminal breach of trust, conspiracy, and unlawful operation of deposit programs outside the regulated financial system.
The probe has revealed the scale of the alleged fraud to be far greater than initially estimated. Preliminary findings suggest that more than one lakh investors from different districts of Uttarakhand may have invested their savings in various schemes promoted by the organization. Authorities estimate that total deposits linked to the case could be close to Rs. 800 crore.
Role of the Newly Arrested Accused
The CBI stated that the two individuals arrested in Mumbai are believed to be among the principal accused in the case. Investigators suspect they played an active role in receiving, managing, transferring, and allegedly diverting money collected from depositors.
Evidence gathered so far reportedly points to their involvement in a broader network responsible for handling funds obtained through the schemes. Following the completion of transit remand procedures, both accused are expected to be presented before the designated court dealing with matters under the BUDS Act in Dehradun.
Earlier Arrests and Property Tracing
The latest action follows the arrest of five other accused persons on May 12 and 13. Among them were three senior cooperative promoters associated with LUCC’s operations in Uttarakhand. Investigators allege these individuals were directly involved in collecting deposits and overseeing branch activities within the state. All five remain in judicial custody at Sudhowala Jail in Dehradun.
Meanwhile, the investigation has also focused on tracing assets allegedly acquired using proceeds generated from the deposit schemes. The CBI has identified several immovable properties linked to the accused and shared the details with the competent authority under the BUDS Act. Officials have requested appropriate action, including freezing of assets, with the objective of protecting the interests of affected investors and facilitating future compensation measures.
Investigation Continues
The agency has described the recent arrests as an important step toward uncovering the full extent of the alleged conspiracy. Officials say efforts are underway to complete the investigation as quickly as possible while ensuring that all relevant evidence is examined thoroughly. Further inquiries remain ongoing, and additional developments may emerge as the probe progresses.