Dharan Sub-Metropolitan Requests Central Government’s Assistance Over Cooperative Fund Misappropriation

Dharan Sub-Metropolitan Municipality has sought assistance from the central government regarding the misappropriation of nearly NPR 12 billion by Barah and Shreya Savings and Credit Cooperatives operating in Dharan. The municipality reported that Barah Cooperative misappropriated approximately NPR 11 billion, while Shreya Cooperative misused over NPR 1 billion. Both cooperatives have subsequently shut down, and their management is currently absconding. Due to limited resources, the municipality has been unable to resolve the issue and has classified these cooperatives as problematic, requesting federal government support for justice and appropriate legal action.

Following the misappropriation by these two major cooperatives in Sunsari’s Dharan, totaling around NPR 12.5 billion, the Dharan Sub-Metropolitan Municipality has formally appealed for the federal government’s intervention to address the issue. Barah Savings and Credit Cooperative and Shreya Savings and Credit Cooperative have caused substantial losses to the public, and the situation has escalated beyond local control, prompting the municipality to send a letter to the federal authorities.

Of these two cooperatives operating in Dharan, Barah is accused of misappropriating approximately NPR 11 billion, while Shreya is reported to have misused more than NPR 1 billion. Both cooperatives are currently non-operational, with their executives having fled. Barah Cooperative, under the jurisdiction of the Dharan Sub-Metropolitan, has been experiencing difficulties since 2022 (2079 BS). The municipality officially declared it problematic on September 7, 2025 (2082 Bhadra 22).

A case has been filed in the district court against 262 persons associated with Barah Cooperative for the alleged misappropriation of NPR 10.73 billion (NPR 1,073,434,7913), which is presently under judicial review. Since 2020 (2077 BS), Shreya Cooperative has faced challenges, with over NPR 1 billion found to be misappropriated. The chairman of Shreya, Lok Bahadur Limbu, fled overseas after the issues arose. A case is pending against him at the Sunsari District Court, currently adjourned.