The LUCC Chit Fund scam investigation has entered a new phase after authorities issued a property attachment notice against absconding accused Shabab Hussain Rizvi. Police in Uttar Pradesh pasted the court order at his residence after he failed to respond to repeated summons in fraud cases linked to the chit fund network. The alleged scheme is suspected to have collected large sums from investors before collapsing. Meanwhile, Rizvi is also facing a ₹4.44 crore cheque bounce case in Mumbai’s Girgaon Court connected to Myfledge Private Limited, adding another legal dimension to the ongoing financial investigation.

LUCC Chit Fund Scam: Property Attachment Notice Issued Against Absconding Accused Shabab Hussain Rizvi; ₹4.44 Crore Myfledge Case Surfaces in Mumbai

Police have issued a property attachment notice against LUCC scam accused Shabab Hussain Rizvi, who remains absconding in Uttar Pradesh fraud cases. Meanwhile, a ₹4.44 crore cheque bounce case linked to Myfledge aviation institute is now under hearing in Mumbai’s Girgaon Court.

LUCC chit fund scam investigation has intensified after authorities issued a property attachment notice against absconding accused Shabab Hussain Rizvi, while a separate ₹4.44 crore financial dispute involving an aviation training company has emerged in Mumbai.

Police in Uttar Pradesh recently pasted an attachment notice at Shabab Hussain Rizvi’s residence in Jalaun district after he failed to appear before the court despite repeated summons related to multiple fraud cases.

The action forms part of the broader investigation into the LUCC chit fund scam, which allegedly collected large sums from investors before operations abruptly collapsed, leaving many depositors uncertain about recovering their money.

Authorities say several criminal cases were earlier registered against individuals linked to the chit fund network in Uttar Pradesh as investigators began examining financial transactions, investor complaints, and organisational structures associated with the scheme.

Officials confirmed that the court authorised the property attachment process after determining that Rizvi had not complied with legal directions to appear before investigators or respond to judicial notices.

Law enforcement teams subsequently visited his residence in Jalaun district and formally affixed the court ordered notice, signalling the next phase of legal action against the accused.

Financial fraud investigations in India frequently involve property attachment procedures when suspects evade court proceedings or fail to cooperate with investigators, allowing authorities to secure assets during ongoing criminal inquiries.

Investigators believe such measures help prevent accused individuals from disposing of assets that may later be required for restitution or compensation to investors affected by fraudulent schemes.

The LUCC chit fund investigation has therefore drawn attention not only for the alleged scale of the financial operation but also for its wider implications for investor protection and regulatory oversight.

LUCC Chit Fund Scam: Investor Fraud Allegations and Police Investigation in Uttar Pradesh

The LUCC chit fund scheme is suspected to have attracted investments from individuals by promising financial returns through informal deposit programmes often marketed through regional networks.

Chit fund and deposit schemes have periodically attracted regulatory scrutiny across India because unregulated financial operators sometimes use them to collect public money without adequate financial safeguards.

Investigators examining the LUCC case are believed to be reviewing financial records, investor complaints, and communications to understand how funds were collected and distributed within the alleged network.

Police sources indicate that multiple individuals associated with the operation remain under scrutiny as investigators attempt to trace the flow of money and identify potential beneficiaries.

Financial crime experts note that such schemes frequently operate through layered networks of agents and intermediaries, making investigations complex and time consuming.

Authorities say property attachment actions against absconding suspects are intended to strengthen legal proceedings while ensuring the accused cannot evade accountability through prolonged absence.

While the investigation continues in Uttar Pradesh, Rizvi’s legal exposure has expanded with the emergence of a separate financial dispute currently being examined in Mumbai courts.

₹4.44 Crore Cheque Bounce Case in Mumbai Girgaon Court Involving Myfledge Private Limited

Legal filings indicate that Rizvi is also facing proceedings before the Girgaon Court in Mumbai in connection with a cheque bounce case valued at ₹4.44 crore.

The case has been registered under provisions governing dishonoured cheques and financial liability, which can lead to criminal prosecution when payments are not honoured despite legal obligations.

According to court records, Rizvi has been summoned along with Bishwajit Badal Ghosh and Piyalee Shyamlendu Chatterjee, directors of Myfledge Private Limited.

The legal complaint has been filed by actor Aayush Shah, who has accused the company of systematic cheating and alleged forgery linked to a financial transaction valued at ₹4,44,48,000.

The complaint claims that investors and students were allegedly misled regarding the aviation training institute’s assets, infrastructure, and professional credentials while seeking enrolment and financial commitments.

Such allegations, if proven, could raise broader concerns regarding regulatory oversight of private aviation training institutions and the verification of educational infrastructure offered to students.

Legal analysts say cases involving cheque dishonour and alleged misrepresentation frequently attract scrutiny under criminal and financial laws when substantial sums of money are involved.

Also Read: Concern on Mumbai Small Causes Court Building Safety Crisis.

Aviation Training Institute Controversy and Alleged Rebranding of Myfledge Company

The controversy surrounding the aviation training venture has also been amplified by complaints from several students regarding promised facilities and training infrastructure.

Students have reportedly raised concerns about the non delivery of aviation training equipment, certification processes, and academic facilities that were allegedly promoted during admissions and promotional campaigns.

These complaints have prompted questions about the operational legitimacy of the institute in Uttarakhand and other locations where the training programme was reportedly marketed.

Investigators may examine whether the institution possessed the necessary regulatory approvals, infrastructure, and faculty required to operate as a professional aviation training centre.

Adding another layer to the controversy, complainants have alleged that the company has rebranded itself from Myfledge Private Limited to Fledge Institute of Aviation and Hospitality.

According to the allegations, the name change may have been intended to continue operations and engage new students or investors under a different institutional identity.

Legal experts say corporate name changes are not unusual in business operations, but investigators often examine whether such changes are linked to attempts to distance companies from ongoing disputes.

According to the Sprouts News Special Investigation Team, the parallel investigations in Uttar Pradesh and Mumbai could determine whether the financial and institutional allegations form part of a larger pattern of misconduct.

As court proceedings continue, authorities are expected to evaluate documentary evidence, financial transactions, and witness testimonies before determining the legal liability of the accused individuals.

Readers with information related to the LUCC scam or Myfledge case may contact Unmesh Gujarathi and the investigative journalist team at 9322755098 to share credible leads and documents.