Shabab Hussain, already under investigation in Uttarakhand’s massive LUCC scam, has been summoned by a Mumbai court in a separate Rs 4.44 crore cheque bounce case linked to an aviation training firm. The case adds fresh legal pressure as multiple probes continue across states.
Mumbai: Legal trouble is rapidly increasing for Shabab Hussain, who is at the centre of the huge Loni Urban Multi Credit and Thrift Cooperative Society (LUCC) scam that affected thousands of depositors in Uttarakhand.
The case, which first came to light after the collapse of the cooperative society, involved large-scale money collection from the public and has already caused severe financial loss to investors across the hill state.
Hussain, who has been under investigation for the multi-crore LUCC fraud since 2019, is now facing fresh legal action from Mumbai. A court in Girgaon has issued summons against him in a separate and serious financial case related to an aviation training company.
This new case adds another layer of legal pressure on Hussain, whose name is already linked with one of the biggest cooperative scams in Uttarakhand.
According to court records, the Girgaon court has summoned Shabab Hussain along with Myfledge Private Limited directors Bishwajit Badal Ghosh and Piyalee Shyamlendu Chatterjee.
The case relates to a cheque bounce amounting to Rs 4.44 crore. All the accused have been directed to appear before the court on February 4, 2026.
The new case links Hussain to Myfledge, an aviation training institute that projected itself as a nationwide education network. Investigators believe this connection is important, as it expands the scope of the ongoing probe into Hussain’s business activities beyond the LUCC scam.
The LUCC case itself involved deposits of more than Rs 1,500 crore, which were frozen after the cooperative society suddenly shut down, leaving thousands of depositors in distress.
The criminal complaints in the Myfledge matter have been filed by actor Aayush Shah. He has accused the company and its promoters of cheating, forgery and financial fraud involving an amount of Rs 4,44,48,000.
The complaints allege that Myfledge falsely claimed to have strong assets, infrastructure and a wide network of aviation training centres across India, including in Dehradun.
Several students have come forward claiming that the promised aviation training facilities, equipment and certifications were never provided. This has raised serious doubts about the credibility and legality of the institute’s operations in Uttarakhand and other states.
“What we trusted as an education venture turned out to be a calculated operation to deceive,”
actor Aayush Shah told TNIE.
“The scale of misrepresentation—both to investors and students—is shocking.”
In an important legal development, the Girgaon court has asked the Oshiwara Police Station to submit details of an already registered First Information Report (FIR). This FIR reportedly names Bishwajit Badal Ghosh, Piyalee Shyamlendu Chatterjee, their family members, and Shabab Hussain.
The court’s direction indicates that the investigation into the aviation firm is expanding alongside the ongoing CBI probe ordered by the High Court in the main LUCC scam.
Advocate K.P. Dubey, who is representing the complainants, said the allegations point to serious financial wrongdoing.
“This is a clear case of financial fraud executed through deception and forgery,”
Dubey remarked, adding that authorities are now closely examining the wider financial dealings of the accused persons.
ALSO READ: Cheque Bounce Cases: New Supreme Court Guidelines
The LUCC scam had earlier attracted nationwide attention after reports suggested that some promotional activities were linked to Bollywood personalities. With the latest Mumbai court case, the focus has once again shifted to Shabab Hussain’s role in multiple financial ventures.
His alleged involvement in this second high-value dispute has further complicated the legal situation and deepened concerns for thousands of victims still waiting for justice in Uttarakhand.
A cheque bounce case is a criminal and civil legal action taken when a cheque issued by a person is returned unpaid by the bank due to insufficient funds or other legal defects.
In India, cheque bounce cases are mainly governed by Section 138 of the Negotiable Instruments Act, 1881.
What is a Cheque Bounce?
A cheque is said to “bounce” when the bank refuses to honour it and returns it unpaid. Common reasons include:
- Insufficient balance in the account
- Account closed
- Signature mismatch
- Payment stopped by drawer
- Cheque issued from a non-existent or blocked account
When Does It Become a Criminal Offence?
A cheque bounce becomes a criminal offence if:
- The cheque was issued for repayment of a legally enforceable debt or liability
- The payee sends a legal notice within 30 days of receiving the bank’s return memo
- The drawer fails to make payment within 15 days of receiving the notice
If all these conditions are met, the offence under Section 138 is complete.
Punishment for Cheque Bounce
If found guilty, the accused can face:
- Imprisonment up to 2 years, or
- Fine up to twice the cheque amount, or
- Both imprisonment and fine
Courts often focus on recovery of money, but criminal liability still applies.
Is It a Civil or Criminal Case?
- It is criminal in nature, but
- It also has a civil recovery aspect, as the main objective is repayment of money
Many cheque bounce cases are settled through:
- Compounding
- Mediation
- Lok Adalat
Which Court Has Jurisdiction?
As per Supreme Court rulings:
- The case is filed where the payee’s bank branch is located (where the cheque was deposited).
Why Cheque Bounce Cases Are Serious
Courts treat cheque dishonour seriously because:
- It affects trust in commercial transactions
- It undermines the credibility of negotiable instruments
- It causes financial loss to businesses and individuals
In High-Value Cases
In large-value cheque bounce cases (like multi-crore disputes):
- Courts closely examine fraud, cheating, and forgery allegations
- Parallel FIRs under IPC may also be registered
- Accused persons can face multiple criminal proceedings simultaneously
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