Embezzlement Exceeding NPR 412 Crore Uncovered at Gorkha Cooperative; NPR 78 Crore Loan Recovered in Non-Members’ Names

The board members of Gorkha Saving and Credit Cooperative have been involved in embezzlement exceeding NPR 412 crore. The government has arrested four individuals linked to the cooperative fraud case, including Chairman Imansingh Rai and Chief Executive Officer Lalbahadur Kshetri. The committee reports that the cooperative’s loan investments amount to NPR 1.524 billion with a membership count of 31,800.

According to the oversight committee of the troubled cooperative, directors such as Tejbahadur Tamang and DB Bamjan have misappropriated significant funds. Following the people’s movement, the newly mandated government under Balendra Sah arrested four individuals connected with the Gorkha cooperative on Friday on charges of cooperative fraud. Those arrested include 61-year-old cooperative chairman Imansingh Rai, CEO Lalbahadur Kshetri, Avin Kumar Rai, and former accounting member Karnbahadur Rai.

The committee states that the Gorkha cooperative’s total savings, including interest, amount to NPR 414.13 million, while total loans, including interest and penalties, reach NPR 446.4 million. Persistent non-repayment of loans taken by board members and their families has precipitated institutional challenges. DB Bamjan and his elder sibling Tejbahadur Bamjan, who are not cooperative members, have failed to repay loans taken over several years, exacerbating the issues.

More than 70 percent of the total loans attributed to dummy borrowers have been utilized, with no regular loan repayments being made. The committee’s report highlights long-standing problems due to non-payment of both principal and interest amounts.