Gorkha Cooperative Faces Misappropriation Exceeding NPR 412 Crore; NPR 78 Crore Loans Recovered Under Non-Members’ Names

The management of Gorkha Savings and Credit Cooperative Society has been implicated in the misappropriation of over NPR 412 crore. The government has arrested four individuals linked to the cooperative fraud case, including Chairman Imansingh Rai and Chief Executive Officer Lal Bahadur Kshetri. According to the committee, the cooperative’s loan investments amount to NPR 1.52 billion and it serves 31,800 depositors.

According to the committee overseeing the troubled cooperative, directors such as Tejbahadur Tamang and DB Bamjan have been found responsible for the misuse of these funds. Following the people’s movement, the government under Balendra Sah arrested four persons related to Gorkha Cooperative on charges of fraud last Friday. Those detained include the 61-year-old Chairman Imansingh Rai, CEO Lal Bahadur Kshetri, Avin Kumar Rai, and former accounting member Karn Bahadur Rai.

The committee reported that Gorkha Cooperative’s total savings (including interest) stand at NPR 414.13 crore, while total loans (including interest and fines) amount to NPR 446.40 crore. The cooperative has faced issues because directors and their families have defaulted on loan repayments for years. Particularly, DB Bamjan and his brother Tejbahadur Bamjan, who are not cooperative members, have caused problems by not repaying the loans taken from the cooperative over many years.

More than 70 percent of the total loans, which appear to have been issued to dummy borrowers, have been utilized. There has been no regular repayment of any loans. The committee’s report highlights that, due to prolonged non-payment of both principal and interest, the cooperative is facing significant financial difficulties.