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Uttarakhand’s LUCC scam accused Shabab Hussain’s name has now also cropped up in a check bounce case of ₹4.44 crore.

Ankita Jain, 23/12/202523/12/2025

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Shabab Hussain, who is at the center of the huge Loni Urban Multi Credit and Thrift Cooperative Society (LUCC) scam, is facing intense legal pressures. Hussain is facing investigation for the multi-crore cooperative society fraud that has crippled thousands of depositors across Uttarakhand since 2019.

Now he faces fresh legal action from Mumbai over a separate, high-value financial dispute involving an aviation training company. Girgaon court has summoned Hussain and MyFlags Pvt Ltd directors Biswajit Badal Ghosh and Piyali Shyamalendu Chatterjee in the check bounce case of ₹4.44 crore.

The court has directed all the parties to appear on 4 February 2026.

The LUCC scam, which began in 2019, has thrown thousands of depositors across Uttarakhand into financial crunch, with deposits estimated at over ₹1,500 crore being lost.

Hussain’s involvement in the scandal had already caused widespread outrage and investigation. Now, his alleged role in the financial irregularities of Myflage Aviation Training Institute has added a new dimension to the investigation.

Actor Aayush Shah has filed a criminal complaint against MyFledge alleging systematic fraud and forgery of Rs 4,44,48,000. Additionally, the complainants argue that investors and students were misled about the assets and reputation of the institution.

Students have claimed promised training infrastructure and certificates have not been supplied, raising doubts over the legitimacy of the firm in Uttarakhand and elsewhere.

Speaking to The New Indian Express, Shah said, “What we trusted as an education enterprise was a deliberate conspiracy to defraud. The scale of misrepresentation to both investors and students is shocking.”

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The Girgaum court has directed the Oshiwara police station to submit details of the existing First Information Report (FIR) naming Ghosh, Chatterjee, their family members and Hussain. The move signals a deeper probe into the operations of the aviation firm, parallel to the high court-ordered CBI probe into the primary LUCC fraud.

Emphasizing the seriousness of the situation, lawyer KP Dubey, representing the complainants, said, “This is a clear case of financial fraud executed through deception and forgery.” Dubey said, investigation into Hussain’s extensive financial transactions is being intensified.

According to a report ETV Bharat published in November, a total of 18 First Information Reports (FIRs) have been registered across multiple districts, including Dehradun, Haridwar, Pauri Garhwal, Chamoli, Tehri, Rudraprayag, Uttarkashi, Bageshwar and Nainital.

LUCC Society started operations in various districts in 2019. This attracted depositors to use fixed deposit (FD) and recurring deposit (RD) programs to provide adequate returns. However, in 2024, the Society suddenly closed its offices.

India News check bounce caseLoni Urban Multi Credit and Thrift Cooperative Society ScamLUCC scamShabab HussainUttarakhandUttarakhand LUCC scam.

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