MyFledge Pvt. Ltd. Faces Fresh FIR in Rs.5 Crore Fraud Case in Uttar Pradesh, 7 Cases Already in Mumbai

The legal net around MyFledge Pvt. Ltd. continues to tighten. A new FIR has been filed in Baghpat (U.P.), linking the company and its directors to a massive Rs.5 crore financial fraud. This development adds to multiple ongoing investigations across India, with MyFledge now accused in at least eight FIRs and seven criminal cases in Mumbai. The allegations center on a multi-state cooperative society scam that has reportedly deceived over 500 investors.

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Scam Through Cooperative Network

According to police reports, the scam was operated through The Loni Urban Multi-State Credit and Thrift Cooperative Society (LUCC). Investigators have named 22 individuals in the case, including top MyFledge executives. The fraudulent scheme allegedly involved the misuse of cooperative funds collected from unsuspecting investors under the pretext of attractive financial returns.

ADG Orders Strict Action

Additional Director General (ADG) Crime and Law & Order, Uttarakhand, V. Murugeshan, recently reviewed the progress of the seven registered cases against LUCC and related entities through a video conference. He directed police officials to speed up the probe, file charges swiftly, and take strong legal action against the accused. The ADG also urged the registration of new FIRs wherever victims had filed fresh complaints.

Look Out Circulars Issued

With concerns that the prime accused might flee the country, the ADG instructed authorities to issue Look Out Circulars (LOCs) and Red Corner Notices (RCNs) with Interpol’s support. Among the prime suspects is Shabab Hussain (also known as Shabab Hashim), a director at MyFledge Pvt. Ltd., who is reportedly absconding.

Asset Seizures and Bank Freezes

Law enforcement agencies have been directed to trace and seize assets acquired through fraudulent means. Police have also been told to freeze bank accounts of the accused based on the money trail, and to submit case reports to the Enforcement Directorate (ED) and Income Tax Department for financial investigation. The Registrar of Companies (ROC) has also been instructed to share relevant corporate documents for scrutiny.

Legal Acts Invoked

Authorities are preparing to register additional cases under the Uttarakhand Protection of Interests of Depositors (UPID) Act, 2005 and the Banning of Unregulated Deposit Schemes (BUDS) Act, 2019. These laws enable the government to attach properties, recover investor money, and punish promoters of unregulated deposit schemes. The goal, officials say, is to ensure restitution for affected investors.

Separate Mumbai Fraud Case

In a related case, a Mumbai court has issued process in a Rs.4.44 crore fraud case involving MyFledge Pvt. Ltd. and directors Bishwajit Badal Ghosh (a self-proclaimed struggling singer), Piyalee Shyamlendu Chatterjee, and Shabab Hussain. Additionally, six cheque bounce cases (Section 138) are pending in Girgaon Court, and another cheating and forgery case has been lodged in Andheri Court against MyFledge directors and their family members.

Student Complaints Surface

Apart from financial fraud allegations, students have filed multiple complaints against MyFledge Pvt. Ltd., alleging false promises and misleading claims made during admissions. The company claims to operate training centres in cities such as Bengaluru, Lucknow, Bhopal, Guwahati, Raipur, Mangaluru, Siliguri, Surat, Chandigarh, Dehradun, Navi Mumbai, and Mumbai.

Nationwide Coordination Underway

During a high-level review meeting in March 2025, ADG Murugeshan stressed the need for inter-state coordination to trace assets, recover investor funds, and ensure strict accountability under Indian financial and criminal laws. With one of the company’s directors now reported absconding, the investigation continues to expand across multiple states.

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