CBI Probes ₹500 Cr Uttarakhand LUCC Co-op Scam

The Central Bureau of Investigation (CBI) has opened a high-profile probe into an alleged multi-crore fraud linked to Loni Urban Multi-State Credit & Thrift Co-operative Society (LUCC) in Uttarakhand, registering an FIR that names 46 accused — including Bollywood actors Alok Nath and Shreyas Talpade.

The case, transferred to the CBI on the directions of the Uttarakhand High Court, centres on claims that the co-operative society raised deposits worth hundreds of crores from small investors across the state by promising high returns, and then stopped paying interest and principal, leaving thousands of depositors stranded.

From State SIT to CBI: How the Probe Landed in Dehradun

Complaints against LUCC started surfacing several years ago, as branches mushroomed across Uttarakhand. The society, registered as a multi-state co-operative with an officially limited area of operation, allegedly opened dozens of branches and collection centres across at least nine districts in the state, offering high, assured returns on deposit schemes that resembled chit-fund or unregulated collective investment plans.

As investors stopped receiving payouts, protests and representations built up, leading the state government to constitute a special investigation team (SIT) and later hand parts of the enquiry to specialised crime units. However, with the scale of alleged fraud expanding and multiple FIRs being registered, the Uttarakhand High Court eventually directed that the entire matter be transferred to the CBI and asked the state to fully cooperate with the central agency.

Acting on this order, the CBI’s Special Crime Branch in Dehradun has now registered a consolidated FIR, clubbing earlier cases and naming key functionaries, agents and associated individuals linked to LUCC.

What the FIR Alleges About the LUCC Fraud

According to the FIR, LUCC and its office-bearers allegedly:

• Collected deposits running into several hundred crores of rupees from the public in Uttarakhand, far beyond the society’s authorised area of operations.
• Marketed schemes promising attractive, assured returns and regular dividends that were not backed by adequate underlying assets or sustainable business activity.
• Used a network of branches, facilitation centres and local agents to deepen penetration into small towns and semi-urban pockets.
• Defaulted on payments once the inflow of fresh deposits slowed, allegedly diverting funds instead of honouring obligations to depositors.

Initial estimates by investigating agencies have pegged the potential fraud exposure at around ₹500 crore and possibly more, as more victims continue to come forward and cases are consolidated.

Brand Ambassadors Under the Scanner: Role of Alok Nath and Shreyas Talpade

A key dimension that has drawn nationwide attention is the naming of veteran actor Alok Nath and film and television actor Shreyas Talpade in the CBI FIR. Both were featured as brand ambassadors of LUCC in promotional material.

Investors allege that the presence of well-known actors in advertisement videos, posters and digital campaigns gave the society an aura of credibility. Many depositors say they were persuaded to put in their savings because LUCC publicly showcased the two actors as faces of the organisation.

The FIR does not by itself establish guilt; rather, it formally brings the actors into the ambit of investigation. The CBI is expected to examine:

• Contracts and financial arrangements, if any, between LUCC and the actors or their representatives.
• The extent to which promotional content may have been vetted or approved by them or their teams.
• Whether they had knowledge of investor grievances or regulatory objections while the campaigns were active.

Publicly, those named have either maintained silence or denied wrongdoing, and their precise legal exposure will depend on what the investigation ultimately uncovers.

Main Accused and the Hunt for the Alleged Mastermind

At the core of the LUCC case is its alleged mastermind, widely identified in complaints and media reports as Sameer Agarwal, the society’s key promoter. He is accused of orchestrating the rapid expansion of LUCC’s footprint in Uttarakhand and other states, while assuring investors that the co-operative was fully authorised by the Government of India and well regulated.

Investigating agencies say he is now absconding and believed to be operating from abroad, with look-out circulars and other alerts issued against him. Several other functionaries, including local managers and agents, have already faced state-level action in earlier FIRs, and their roles will now be re-examined as part of the CBI’s consolidated case.

The CBI’s Dehradun unit has appointed a dedicated investigating officer for the LUCC probe, and the FIR itself runs into more than a hundred pages, reflecting the complexity of the transactions and the multiplicity of complaints.

What This Means for Investors and the Co-operative Sector

For depositors in Uttarakhand, the CBI’s entry offers a fresh hope of accountability and a deeper forensic look at how their money was mobilised and used. However, as with most large fraud cases, actual recovery of funds will depend on the assets that can be traced and attached, both in India and overseas.

The case also raises broader questions for the co-operative and multi-state co-operative ecosystem:

• Regulatory arbitrage – How societies registered in one jurisdiction are able to operate de facto as chit-fund-like entities in other states without adequate supervision.
• Mis-selling and aggressive marketing – The use of celebrity endorsements and high-return narratives to tap into trust in smaller towns and among first-time investors.
• Inter-agency coordination – The need for faster escalation from local police to specialised agencies and, where warranted, central investigation.

For regulators and policymakers, the LUCC saga strengthens the case for tighter oversight of deposit-taking co-operatives and more effective enforcement of laws such as the Banning of Unregulated Deposit Schemes Act.

Shunyatax Global View – Co-operative Fraud, Endorsements & Compliance

At Shunyatax Global, the LUCC investigation is a case study in how:

• Lightly regulated structures can be used to raise large pools of public money on the promise of above-market returns.
• Celebrity endorsements and brand-ambassador arrangements can significantly influence investor sentiment and thus become part of the risk surface.
• Fragmented oversight and delayed escalation can allow small irregularities to snowball into multi-crore crises.

For banks, NBFCs, insurers, co-operatives and fintech platforms, the LUCC case underscores the importance of:

1. Robust product-governance frameworks
   Ensuring deposit, investment and saving schemes are thoroughly vetted, documented and aligned with applicable regulations, including explicit risk disclosures.
2. Clear endorsement and marketing controls
   Mapping the legal and reputational risks associated with using influencers or celebrities, and ensuring that claims made in campaigns are fully consistent with legal and financial reality.
3. Early-stage fraud analytics and whistleblower channels
   Detecting emerging patterns of complaints, missed payouts or abnormal fund flows in co-operative or partner ecosystems before they proliferate.

Shunyatax.in Co-operative Fraud & Investor Protection Advisory

As multi-state co-operatives, NBFCs and hybrid investment platforms grow, cases like the LUCC scam are a reminder that investor trust can be lost far faster than it is built. For regulated entities and serious market participants, this is the moment to stress-test controls around deposit mobilisation, partner onboarding and public communications.

Shunyatax Global works with financial institutions, co-operatives and large distributors to:

• Assess exposure to co-operative and chit-fund style fraud risks across states and branches.
• Strengthen product governance, disclosures and marketing-compliance frameworks.
• Design and implement investor-protection and grievance-redressal mechanisms.
• Support investigations and recovery efforts through forensic reviews and regulatory engagement.

Visit Shunyatax Auditing Services to request a confidential review of your co-operative and deposit-risk posture, and to follow the Shunyatax News & Insights column for ongoing coverage of financial crime, cyber risk and regulatory developments.