The Central Bureau of Investigation (CBI) on Tuesday arrested two alleged key conspirators in the Rs 800-crore LUCC chit fund scam from Mumbai.
The accused, Kishan Jain and Pankaj Jain, are alleged to have orchestrated a large-scale fraud through the Loni Urban Multi State Credit and Thrift Co-operative Society (LUCC), duping over one lakh investors by luring them with promises of attractive returns on their deposits.
According to the CBI, the duo had been absconding since the Uttarakhand Police registered 18 FIRs in connection with the scam. The investigation was transferred to the CBI in November last year following directions from the Uttarakhand High Court.
The agency tracked the accused to Mumbai and arrested them on Monday after what it described as a sustained and extensive investigation. The probe involved scrutiny of large volumes of financial records, analysis of bank transactions, collection of witness statements, and field investigations across several states.
The case relates to allegations of illegal collection of public deposits, cheating, criminal breach of trust, criminal conspiracy, operation of unregulated deposit schemes, and misappropriation of funds by LUCC.
The CBI said its investigation has revealed a massive fraud affecting depositors across multiple districts of Uttarakhand. More than one lakh investors were allegedly induced to invest in various unregulated schemes operated by LUCC, resulting in estimated losses of around ₹800 crore.
Further investigation into the case is underway.