The Sthanakwasi sect is a significant sub-sect within the Shwetambar tradition of Jainism. It was not founded by Loka Shah, but rather by Lonkashah (also known as Lonka Shah) in the 15th century CE in Gujarat, India. Lonkashah was a Jain reformer who emphasized a return to the original teachings of the Jain Agamas and strongly opposed idol worship, which was prevalent in other Jain sects at the time.

The Sthanakwasi movement advocates for worship without idols and emphasizes meditation, ethical conduct, and scriptural study. Their places of worship are called "Sthanaks" instead of temples with idols.

Thus, the correct founder is Lonkashah, not "Loka Shah."