Daijiworld Media Network – New Delhi

New Delhi, Jun 2: The Central Bureau of Investigation (CBI) has arrested two alleged masterminds behind the Rs 800-crore Loni Urban Multi State Credit and Thrift Co-operative Society (LUCC) scam, bringing a major breakthrough in one of Uttarakhand’s largest financial fraud cases.

The accused, identified as Kishan Jain and Pankaj Jain, were apprehended from Mumbai on Monday after months of investigation. According to the CBI, the duo had been absconding since the Uttarakhand Police registered multiple cases against them in connection with the scam.

Officials said the alleged fraud involved the illegal collection of deposits from the public through unregulated investment schemes that promised high returns. More than one lakh investors across Uttarakhand are believed to have been cheated, with total losses estimated at around Rs 800 crore.

The case was transferred to the CBI by the Uttarakhand High Court in November last year following the registration of 18 FIRs by the state police.

In a statement, the CBI said the arrests were the result of extensive investigation involving scrutiny of large volumes of financial records, analysis of banking transactions, collection of witness statements and field inquiries conducted across several states.

The agency said the probe has revealed large-scale victimisation of depositors who were allegedly lured into investing their savings in schemes operated by LUCC. Investigators are examining allegations of cheating, criminal breach of trust, criminal conspiracy, misappropriation of funds and operation of unregulated deposit schemes.

CBI officials described the scam as one of the biggest financial frauds to affect investors in Uttarakhand, with thousands of families reportedly suffering significant financial losses. Further investigation is underway to trace the flow of funds and identify other individuals involved in the alleged fraud.