New Delhi, 02 June (H.S.):

The Central Bureau of Investigation (CBI) has made a significant breakthrough in the high-profile LUCC chit fund scam by arresting two alleged masterminds of the fraud, Kishan Jain and Pankaj Jain alias Pankaj Chaudhary, from Mumbai. The duo is accused of playing a crucial role in the collection, management, diversion and misappropriation of investors' funds through the irregular deposit schemes operated by LUCC.

According to the CBI, both accused were arrested on Monday following an extensive investigation that involved a detailed analysis of financial records, scrutiny of banking transactions, collection of oral evidence, and inquiries conducted across multiple states. After obtaining transit remand, the accused will be produced before the BUDS Act Court in Dehradun.

The agency stated on Tuesday that the case was registered on November 26, 2025, in compliance with an order issued by the Uttarakhand High Court on September 17, 2025. The CBI took over 18 FIRs originally registered by the Uttarakhand Police and launched a comprehensive investigation against office-bearers of the LUCC (Loni Urban Multi-State Credit and Thrift Cooperative Society) and other individuals.

The case has been registered under various provisions of the Indian Penal Code (IPC), Bharatiya Nyaya Sanhita (BNS), the Uttarakhand Protection of Depositors' Interests Act, and the Banning of Unregulated Deposit Schemes (BUDS) Act.

The investigation pertains to the alleged illegal collection of public deposits, cheating, criminal breach of trust, criminal conspiracy, operation of unregulated deposit schemes, and misuse of investor funds. According to the CBI, more than one lakh investors in Uttarakhand were allegedly persuaded to invest in various irregular deposit schemes operated by LUCC. The total amount collected from investors is estimated to be around ₹800 crore.

The agency said evidence gathered during the investigation indicates that the two arrested individuals were deeply involved in a larger conspiracy and formed a vital part of the network responsible for handling, transferring, managing and utilizing funds collected from lakhs of investors.

Earlier, on May 12 and 13, the CBI had arrested five other accused persons, including three senior cooperative promoters associated with LUCC. These individuals allegedly played an active role in mobilizing public deposits and operating multiple branches across Uttarakhand. All five are currently lodged in Sudhowala Jail in Dehradun under judicial custody.

The CBI has also identified several immovable properties allegedly acquired using proceeds of crime generated through the scam. Details of these assets have been forwarded to the Competent Authority and Finance Secretary of the Uttarakhand Government. The agency has requested necessary action under the BUDS Act to freeze the properties and facilitate relief measures for affected investors.

The investigation remains ongoing, and further action will be taken based on the findings that emerge during the probe.

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Hindusthan Samachar / Jun Sarkar