Savvy Brothers Misappropriate NPR 270 Million from Khusi Cooperative, Leaving Depositors in Distress

Summary: Approximately 110 depositors have been unable to withdraw their savings for the past four years after four brothers from the same family embezzled funds and fled from Khusi Savings and Credit Cooperative. The cooperative holds a total deposit balance of NPR 270 million, with depositors demanding the return of about NPR 90 million by filing petitions with the Cooperative Authority. The management is currently missing, and depositors report that the cooperative’s certificates have been destroyed while many borrowers have also absconded.

Details: On 25th Baisakh, Kathmandu — Depositors of Khusi Savings and Credit Cooperative face serious difficulties after four brothers from the same family embezzled cooperative funds and fled. These depositors, numbering nearly 110, have been unable to access their savings for over four years. The cooperative, which collected savings through four branches in Kathmandu, currently holds total deposits of around NPR 270 million, according to the Cooperative Department.

Since depositors have not been able to reclaim their money, they have submitted formal applications to the Cooperative Authority with evidence, emphasizing their entitlement to approximately NPR 90 million. The cooperative institution has been closed and its directors are fugitives. While some small depositors have refrained from demanding returns, major depositors continue to press claims with the authority.

The cooperative’s Chairperson is Abhay Ghimire, who reportedly has connections with a woman residing in the United States. Depositors allege that cooperative funds may have been transferred abroad. Some even suggest that Mr. Ghimire may have himself left the country. Other key directors include Matrika Ghimire, Gyanendra Ghimire, and Subodh Ghimire — all brothers from the same family, permanent residents of Jhapa district, and affiliated with the CPN-UML party.

They had previously hosted top political leaders for the inauguration of cooperative service centers. Depositors claim the directors have not only embezzled funds but also destroyed certificates of deposit. Sushil Thapa, one such depositor, reported losing his fixed deposit certificate, which the directors destroyed despite requests during maturity.

“I have NPR 1.9 million in my fixed deposit account, and I have proof of it,” Thapa said. “However, the directors did not renew the certificate, and now it has been destroyed, making it impossible to reclaim the deposit.” Many depositors who lack certificates face similar issues, with estimates putting the number of such debtors hiding funds at several hundred.

Khusi Cooperative had a paid-up capital of NPR 50 million and operated its head office at Khichapokhari, New Road, with branch offices in Kalimati, Chabahil, and Gangabu. Currently, all these offices are closed. Depositors allege that the directors have destroyed all operational records of the cooperative.

Victims have united under the National Campaign for Cooperatives Depositor Protection and formed a struggle committee. They have lodged complaints and are applying pressure on police, the National Cooperative Regulatory Authority, the Ministry of Land Management, Cooperatives and Poverty Alleviation, and other relevant bodies seeking the return of their savings.

Most depositors became aware of the crisis only after the cooperative’s closure and the directors’ disappearance. Many lack passbooks; some fixed depositors no longer hold certificates. “The directors have deliberately complicated the situation to evade responsibility,” Thapa observed. “I had kept money earned from working in a shop at the cooperative. When I sought to retrieve it, I had to quit my job, and the money was stuck.”

The cooperative’s main directors are siblings, and the remaining staff are reportedly their relatives or close acquaintances. Though the directors’ father remains in contact with the victims and has promised to refund their money, no one knows the whereabouts of the sons. Depositors are actively trying to trace cooperative funds but have yet to uncover any hidden assets.

In addition, borrowers who had taken loans amounting to about NPR 90 million from the cooperative have also absconded. Depositor Radha Maharjan stated, “Approximately 80 borrowers have fled. The rental payments for the cooperative’s office premises have also been delayed; at the head office, outstanding rent has reached NPR 10 million.” She herself has about NPR 1.8 million trapped in the cooperative.

Some depositors at the Kalimati service center earn income through labor work. “They collect scrap and do daily wage jobs. Every morning and evening, they ask me, ‘When will our cooperative money be returned?'” said one concerned depositor. She questioned why the provincial government has been preventing the cooperative’s declaration of being in distress.

“Our savings are stuck, the institution is closed, and the directors are missing, yet the cooperative is not declared distressed, which is unjust,” she said. Declaring it distressed could provide hope for partial refunds.