New Delhi : In a major development in the high-profile LUCC (Loni Urban Multi-State Credit and Thrift Cooperative Society) scam linked to Uttarakhand, the Central Bureau of Investigation (CBI) has arrested two more accused from Maharashtra. With this latest action, the total number of arrests in the case has reached seven. The agency has alleged that nearly 150,000 investors were defrauded of approximately ₹800 crore through fraudulent investment schemes.
According to the CBI, the two recently arrested accused played a key role in mobilising funds, managing financial transactions, and executing the alleged diversion and misappropriation of investor money. Both were taken into custody from Mumbai and are being brought to Dehradun on transit remand. They will be produced before a special court under the BUDS Act.
The agency further clarified that this is its second major round of arrests in the case. Earlier, in May 2026, five accused were arrested, all of whom are currently lodged in judicial custody at Sudhowala Jail in Dehradun.
Registration Begins for FutureCrime Summit 2026, India’s Largest Cybercrime Conference
Modus Operandi and the Collapse
Investigators stated that investors across Uttarakhand and other regions were lured through fixed deposit and recurring deposit schemes that promised unusually high returns, including claims of doubling money in a short period. A wide network of agents operating in rural and semi-urban areas was allegedly used to expand the investor base rapidly.
The scam came to light in June 2024, when around 35 branches of the society abruptly shut down, leaving thousands of investors unable to access their deposits. Following multiple complaints across districts, the matter was escalated and eventually handed over to the CBI after orders from the Nainital High Court.
Preliminary investigation has identified Samir Agarwal as the main accused, who is reportedly absconding along with his wife, Sania Agarwal. The CBI has issued lookout notices and initiated further legal proceedings to trace their whereabouts.
Officials said the accused used a carefully structured strategy to build trust among investors. This included the use of forged documents, fabricated bank statements, and fake income tax returns. In addition, the organization allegedly leveraged celebrity endorsements and promotional materials featuring well-known film personalities to create an illusion of credibility and financial stability.
Diversion of Funds and Asset Freezing
The investigation has also revealed large-scale diversion of funds collected from investors. The money was allegedly routed through multiple accounts and used for purchasing assets and financing other undisclosed financial activities. The CBI estimates that while the documented investment pool stands at around ₹800 crore, the actual extent of financial irregularities could be higher.
The agency has collected substantial evidence through bank records, digital transaction trails, and field investigations conducted across multiple states. More than 18 FIRs registered earlier by state police have been taken over by the CBI for consolidated and detailed investigation.
Authorities have also identified several immovable properties purchased using proceeds of the alleged fraud. Steps are being taken under relevant legal provisions to freeze these assets, with the aim of safeguarding investor interests and enabling possible recovery.
Expert Insight and Next Steps
Experts believe this case represents one of the largest cooperative investment frauds in recent years, involving a complex interstate network of financial transactions, shell structures, and fake investment instruments. Investigations are now focusing on tracing the complete money trail and identifying additional beneficiaries.
Cybercrime and financial fraud expert and former IPS officer Prof. Triveni Singh noted that such scams increasingly operate through hybrid models combining traditional investment fraud with digital manipulation. He said, “Fraudsters today rely on a mix of forged documentation, celebrity influence, and digital transaction ecosystems. This combination makes it extremely difficult for ordinary investors to detect manipulation until it is too late.”
He further added that social engineering plays a critical role in such schemes, where emotional trust and perceived legitimacy are engineered to influence investment decisions at scale.
The CBI continues its search for the absconding accused and is also probing possible foreign links in the case. Officials indicated that further arrests and revelations are likely in the coming days as the investigation expands into the broader financial network behind the scam.
