The Nainital High Court has demanded a formal explanation from the Uttarakhand state government within two weeks regarding the ₹800 crore fraud allegedly orchestrated by the LUCC chit fund company. A bench led by Chief Justice G. Narender and Justice Alok Mehra heard the matter after a public interest petition raised concerns over widespread financial losses suffered by rural investors.
Scope and Gravity of the Alleged Scam
The petition reveals that LUCC, which opened offices in Dehradun, Rishikesh, and Pauri in 2021, attracted investments from local agents who misled residents with false promises. Despite portraying itself as a legitimate chit fund, LUCC failed to secure registration under the Society Registration Act. Between 2023 and 2024, the company abruptly ceased operations, leaving investors stranded. Reportedly, 14 FIRs were filed in Uttarakhand and 56 in other states, while the alleged primary perpetrator reportedly fled abroad.
Court’s Directive and Next Steps
During the hearing, the High Court requested the views of a CBI counsel on whether a deeper federal probe is warranted. The government has been instructed to file its written response within a fortnight. The next hearing is scheduled within two weeks, by which time the court expects a comprehensive update on actions taken so far and any further steps planned to trace the accused or freeze assets.
With hundreds of investors affected and significant sums at stake, the High Court is pressing the state government for accountability—and potentially expanding the investigation at the central level.
About the Author – Anirudh Mittal is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.