IN THE HIGH COURT OF UTTARAKHAND

AT NAINITAL

HON’BLE MR. G. NARENDAR, C.J.

HON’BLE MR. ASHI SH NAI THANI , J

Criminal WritPetition No.1020 of 2025

Vishal Chhetri and Others ......Petitioners

Vs.

State of Uttarakhand and others …..Respondents

With

Writ Petition (PIL)No. 46 of 2025

Ashutosh ......Petitioner

Vs.

State of Uttarakhand and others …..Respondents

Presence

Mr. M.C. Pant, learned counsel for the Petitioner in WPPIL No.46 of 2025.

Mr. Devang Dobhal, learned counsel for the Petitioner. Mr. Piyush Garg, learned Special Counsel for the CBI.

Mr. Saurav Adhikari, learned Deputy S.G. for the Union of India.

Mr. J.S. Virk, learned D.A.G. for the State of Uttarakhand.

Per: Hon’ble Ashish Naithani, J.

1. The present writ petition under Article 226 of the Constitution of India has

been filed by twenty-seven petitioners, all residents of the State of Uttarakhand, seeking a direction for registration of a case and a fair and impartial investigation against The Loni Urban Multi-State Credit and Thrift Co-operative Society and its office-bearers for allegedly defrauding

investors of crores of rupees through unauthorized operations in the State.

2. The record reveals that the said Society was registered under Section 7 of the Multi-State Co-operative Societies Act, 2002, bearing Registration No. MSCS/CR/639/2012, with its area of operation confined to the States of Uttar Pradesh and Delhi. Despite this statutory restriction, the Society illegally expanded its operations into Uttarakhand and opened more than eighteen “Suvidha Centres” in districts including Dehradun, Haridwar, Pauri Garhwal, Chamoli, Tehri, Rudraprayag, Uttarkashi, Bageshwar and Nainital.

3. Acting through its local managers and agents, the Society invited deposits from the public, promising high returns and commissions on collections. The petitioners, most of whom are unemployed persons, homemakers, or retired individuals, were persuaded to deposit their savings and also induced their acquaintances and relatives to invest further sums, resulting in total investments running into several crores of rupees.

4. Subsequently, the petitioners discovered that the Society had stopped making repayments on maturity and that its offices were abruptly closed. Complaints made by the investors were either ignored or met with assurances that the payments would soon be released. When no payments were made, the petitioners approached the police authorities, but their requests for registration of FIRs were allegedly declined.

5. Thereafter, the petitioners submitted multiple written complaints between March and August 2025 to the Senior Superintendent of Police, Dehradun, the District Magistrate, and other authorities, detailing the fraud and naming the branch managers responsible. When no effective action ensued, an application under Section 175(3) of the Bharatiya Nagarik Suraksha Sanhita, 2023 was moved before the Civil Judge (S.D.)-6, Dehradun, seeking a direction for registration of an FIR against the office-

bearers of the Society.

6. Parallelly, the Government of Uttarakhand, acting upon reports of large-

scale misappropriation, issued communications to the Central Registrar of Co-operative Societies, the Reserve Bank of India, and the Ministry of Cooperation, Government of India. The Central Registrar thereafter initiated proceedings under Section 86 of the Multi-State Co-operative Societies Act, 2002 and, vide order dated 03.03.2025, directed winding-up of the Society and appointed the Joint Commissioner & Joint Registrar, Meerut Division, as the Liquidator.

7. It is further placed on record that in WPPIL No. 46 of 2025 (Ashutosh v.

State of Uttarakhand & Ors.), a public-spirited individual raised identical issues concerning the same Society. The Division Bench, noting that FIRs had been registered in fourteen cases across the State and similar offences were reported in three other States, directed the State to furnish an action- taken report and requested the learned Standing Counsel for the CBI to obtain