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LUCC – Investor grievance redressal update for cooperative sector fraud cases in Uttarakhand –
The Uttarakhand government has announced plans to introduce a dedicated online platform to collect complaints from investors affected by the Loni Urban Multi-State Credit & Thrift Co-operative Society case, a move expected to streamline investigations and provide relief to thousands of victims.

State Responds to Central Agency’s Request

The decision to build the integrated portal followed a formal communication from the Central Bureau of Investigation dated January 14. Acting on the request, Cooperation Department Secretary Dilip Jawalkar instructed officials to immediately begin technical and administrative work on the platform. The portal is intended to serve as a single, verified channel through which affected investors can submit claims and supporting documents.

Officials familiar with the matter said the digital system would help avoid duplication of complaints and ensure that victim data is collected in a structured and transparent manner. Once operational, it is expected to significantly reduce the burden on local police stations and investigative teams.

Alleged Fraud Involving Large-Scale Public Deposits

The cooperative society at the center of the case is accused of defrauding investors of nearly Rs 800 crore. According to investigators, the institution lured depositors with promises of unusually high returns on fixed and recurring deposit schemes. Its operations spanned 35 branches across Uttarakhand, supported by a wide network of agents who primarily targeted small savers in rural and semi-urban regions.

Many investors reportedly invested life savings, believing the cooperative to be a regulated and trustworthy entity. Authorities say funds were collected over several years before operations abruptly ceased.

Offices Shut Down, Complaints Begin to Surface

The alleged scam came to public attention in June 2024, when all branch offices of the society closed without prior notice. The first police complaint was lodged at Kotdwar police station by a local resident, Tripti Negi. In the weeks that followed, more victims came forward with similar allegations.

So far, law enforcement agencies have registered 18 separate first information reports across six districts, including Dehradun and Haridwar. More than a dozen individuals linked to the cooperative, including office staff and agents, have been taken into custody.

Probe Shifted From State CID to CBI

Initially, the case was handled by the state’s Crime Investigation Department. However, the course of the investigation changed after a public interest petition was filed in the Uttarakhand High Court. The court later clubbed it with another petition raising similar concerns and directed that the matter be transferred to the Central Bureau of Investigation.

The central agency formally took over the probe in July 2024 and, on November 27, registered a consolidated case combining 17 earlier complaints. Officials said this step was necessary to examine the financial trail comprehensively and identify the full scope of the alleged fraud.

Allegations Extend Beyond Cooperative Banking

Investigators have also uncovered claims suggesting that the accused were involved in parallel fraudulent activities outside the cooperative framework. Film actor Aayush Shah told investigators that he and his sister were persuaded to invest over Rs 4.44 crore in a separate private entity allegedly controlled by the same individuals.

According to Shah, forged documents, including property records, bank statements, and income tax filings, were used to gain their confidence. Authorities are examining these claims as part of the wider investigation.

Key Accused Still Missing, Legal Pressure Mounts

Sources close to the probe said the main accused remain untraceable despite repeated summons. Their continued absence has prompted several victims to approach the court seeking non-bailable arrest warrants. Investigators believe identifying all affected investors is critical to determining total liabilities and possible asset recovery.

The proposed online portal is expected to play a crucial role in this process by giving the agency a clearer picture of the number of victims and the scale of losses across the state.