The Barabanki police on Friday arrested five individuals, including the head of 56 branches of the LUCC Company, in connection with a multi-crore investment fraud that defrauded hundreds of victims. The arrested individuals include Sanjeev Kumar Verma, the branch head and sub-district in-charge, along with managers Swamidayal Mishra, Ramsharan Verma, and Manoj Kumar, and an agent, Ramnaresh.
These individuals are accused of luring investors with false promises of doubling their money in a short period. However, after receiving significant sums of money from victims, the company shut down its operations and disappeared without a trace.
The initial investigation revealed that 900 investors in Barabanki alone were defrauded of an estimated Rs 75 crore. As of now, 10 cases have been registered against the company and its operators across four police stations in the district. These cases were filed at the Badosarai (5), Deva (3), Ramnagar, and Mohammadpur Khala police stations.
According to Additional SP Barabanki, Chiranjeev Nath Sinha, the fraud came to light after a complainant from Barauliya village in Badosarai filed a complaint on November 22, 2024. The complainant alleged that the company issued her a forged bond worth around Rs 1.25 lakh and then abruptly ceased operations. The Badosarai police registered the case and began their investigation.
As the investigation unfolded, more victims came forward, revealing that they, too, had been defrauded by the company. Many investors had deposited large sums of money with LUCC, expecting substantial returns upon maturity. However, after the company disappeared, they were unable to retrieve their funds.
Sinha stated that the modus operandi of the company was complex, with multiple branches spread across several states. Investigators also revealed that Sanjeev Kumar Verma managed 56 branches in Barabanki and surrounding areas, generating an estimated Rs 25 crore in annual turnover. These branches have since been shut down, and police are actively searching for other key suspects, including Uttam Singh Rajput, the alleged mastermind behind the fraudulent operation.
In addition to Rajput, Maya Singh, his wife, and Dinesh Kumar Singh, the company’s managing director, are also under investigation. Investigators believe that the company’s illegal activities spanned multiple states, with several victims across the regions.
The police are continuing their probe and working to ensure that further legal actions are taken to bring the culprits to justice.