In a major development in the multi-crore LUCC chit fund scam, the Central Bureau of Investigation (CBI) has secured the attachment of 23 properties worth approximately ₹25 crore belonging to the accused in connection with the alleged ₹419 crore investment fraud. The attached assets are located across Uttarakhand, Uttar Pradesh and Maharashtra and have been attached under the provisions of the Banning of Unregulated Deposit Schemes (BUDS) Act as part of the agency’s ongoing efforts to trace and recover the proceeds of crime.
Tri-State Asset Freezes and Statutory BUDS Act Invocations
According to the CBI, the attached properties include six assets in Uttarakhand, sixteen in Uttar Pradesh and one property in Mumbai. The attachments were carried out after obtaining approvals from the competent authorities and designated courts under the BUDS Act in the respective states. Investigators said the accused allegedly acquired these properties using funds collected from thousands of investors through the fraudulent deposit scheme.
The agency stated that its investigation has revealed that more than 1.6 lakh depositors were allegedly induced to invest in the Loni Urban Multi-State Credit and Thrift Co-operative Society (LUCC) on the promise of attractive returns. The accused are alleged to have misappropriated nearly ₹419 crore collected from investors, causing substantial financial losses to depositors across multiple states.
Registration Begins for FutureCrime Summit 2026, India’s Largest Cybercrime Conference
Judicial Mandate Transfers and Capital Restitution Initiatives
The CBI took over the investigation in 2025 following directions from the Uttarakhand High Court. Since assuming charge of the case, the agency has been examining financial records, property transactions and banking trails to identify assets allegedly purchased using the proceeds of the fraud. Officials said the latest attachments are part of a broader exercise aimed at securing assets that could eventually be used during legal proceedings and possible restitution efforts.
Investigators have already arrested seven principal accused in the case, all of whom are currently in judicial custody. The agency believes that additional assets linked to the alleged fraud may still remain undiscovered and has intensified efforts to identify further movable and immovable properties connected to the accused and their associates.
Inter-Corporate Divertment Pipelines and Shell Layering Audits
According to investigators, financial and property records indicate that funds collected from investors were allegedly diverted through various channels before being invested in real estate and other assets. The agency is examining banking transactions, ownership records, and other financial documents to establish the complete money trail and identify any additional beneficiaries of the alleged scheme.
Experts note that large-scale financial frauds involving unregulated deposit schemes often rely on layered financial transactions, multiple entities and investments in immovable properties to conceal the proceeds of crime. In such cases, forensic accounting, banking analysis, digital financial records and coordinated action among investigative agencies play a critical role in tracing diverted funds and securing assets acquired through alleged illegal gains.
The investigation remains ongoing, with the CBI continuing to identify additional properties, examine financial evidence and expand the scope of the probe. Authorities are also working to determine whether more individuals or entities facilitated the movement or concealment of the alleged proceeds of crime. Officials said further legal action will be taken based on the evidence gathered during the continuing investigation.
