Face2News/Mumbai
In a major step to help more than 1.5 lakh investors affected by the Loni Urban Multi-State Credit & Thrift Co-operative Society (LUCC) scam, the Uttarakhand government has announced that it will launch a dedicated integrated online portal for victims to submit their complaints.
Meanwhile Ayush said, they will approach the Honourable Court for arrest warrants of Myfledge directors on Feb. 4, as they are not appearing in the court.
In the meantime , after a formal request from the Central Bureau of Investigation (CBI) on January 14, the Secretary Dilip Jawalkar directed the State Cooperation Department to immediately begin the process of developing the portal. LUCC management is accused of cheating investors of nearly Rs 800 crore by offering attractive returns on fixed deposits and recurring deposits.
The society operated through 35 branches across Uttarakhand and used hundreds of agents to collect small savings from people, many of them from rural and semi-urban areas.
"The primary accused, Shabab Hussain (alias Shabab Hashim), along with partners Bishwajit Badal Ghosh and Piyalee Shyamlendu Chatterjee, allegedly orchestrated a parallel fraud under the guise of an another institute named Myfledge Private Limited. "The trio induced me and my sister, Mausam Shah, to invest Rs 4,44,48,000," Aayush Shah alleged.
The scam came to light in June 2024 when all LUCC offices suddenly shut down. An initial FIR was filed based on a complaint by Tripti Negi at the Kotdwar police station, after which multiple complaints emerged. So far, 18 FIRs have been registered in six districts, including Dehradun and Haridwar, and more than 12 officials and agents have been arrested. The investigation was first handled by the state CID. However, a Public Interest Litigation filed by Ashutosh Negi, later merged with another petition by Vishal Chhetri, led the Uttarakhand High Court to step in. As a result, the CBI took over the probe in July. On November 27, the agency registered a consolidated FIR covering all 17 earlier cases.
The investigation has also revealed that the fraud extended beyond cooperative banking.
"The primary accused, Shabab Hussain (alias Shabab Hashim), along with partners Bishwajit Badal Ghosh and Piyalee Shyamlendu Chatterjee, allegedly orchestrated a parallel fraud under the guise of an another institute named Myfledge Private Limited. "The trio induced me and my sister, Mausam Shah, to invest Rs 4,44,48,000," Aayush Shah alleged.
"They gained our trust by showcasing forged property documents, bank statements, and falsified income tax returns." As the scale of the scam continues to grow, sources said the main accused are still absconding. With the accused repeatedly failing to appear before investigators, victims have now approached the court seeking non-bailable arrest warrants. The upcoming portal is expected to help the CBI assess the total financial liability and identify all affected investors across the state.