The Central Bureau of Investigation (CBI) on Monday, 2 June 2025, arrested two key accused — Kishan Jain and Pankaj Jain, also known as Pankaj Chaudhary — from Mumbai in connection with the ₹800 crore LUCC chit fund scam that allegedly defrauded more than one lakh investors across Uttarakhand. The agency described the arrests as a major breakthrough in its probe into the Loni Urban Multi-State Credit and Thrift Co-operative Society (LUCC), which stands accused of illegally mobilising public deposits through unregulated investment schemes.

Background of the Case

The CBI registered the case through its Anti-Corruption Branch in Dehradun on 26 November 2025, acting on directions issued by the Uttarakhand High Court on 17 September 2025. The agency subsequently took over investigation of 18 FIRs that had originally been filed by the Uttarakhand Police. The case has been registered under provisions of the Indian Penal Code (IPC), the Bharatiya Nyaya Sanhita (BNS), the Uttarakhand Protection of Interests of Depositors Act (UPID Act), and the Banning of Unregulated Deposit Schemes (BUDS) Act.

How the Arrests Were Made

According to the CBI, the two accused were apprehended in Mumbai following sustained and intensive investigative efforts that involved scrutiny of extensive financial records, examination of bank transactions, collection of oral evidence, and field investigations conducted across several states. Investigators allege that Kishan Jain and Pankaj Jain were among the principal conspirators, playing an active role in the collection, handling, diversion, and misappropriation of funds raised from investors. After obtaining transit remand, both accused are to be produced before the designated BUDS Act Court in Dehradun.

Earlier Arrests and Custody

This is not the first wave of arrests in the case. The CBI had earlier arrested five accused — including three senior cooperative promoters of LUCC — on 12 and 13 May 2025. All five remain in judicial custody at Sudhowala Jail in Dehradun. The latest two arrests bring the total number of accused in custody to seven, signalling an accelerating pace of investigation.

Asset Freezing and Victim Compensation

The CBI has identified several immovable properties allegedly acquired using proceeds of the crime. The agency has formally requested the Uttarakhand government's Finance Department to freeze these assets and initiate steps to compensate victims under the provisions of the BUDS Act. The deposits in question are estimated at nearly ₹800 crore, mobilised from investors spread across multiple districts of Uttarakhand — making this one of the larger cooperative-sector fraud cases investigated in the state. Further investigation is underway.