From Golchha to Pandey Detained, GB Rai Still at Large Amidst Rs 21 Billion Cooperative Fraud

GB Rai, who absconded after embezzling over Rs 21 billion from cooperatives, continues to have his personal companies operating unabated. The government has initiated the process of refunding small savers of the troubled cooperatives by establishing a revolving fund of Rs 25 crore. Additionally, the government has decided to withdraw cases related to money laundering and organized crime filed against Ravi Lamichhane and GB Rai’s group. (April 24, Kathmandu)

Despite being on the run for five years with the assistance of government mechanisms, GB Rai’s companies are still in operation. Rai, who defrauded more than Rs 21 billion from over a dozen cooperatives, remains at large despite being sought by Nepal Police in Malaysia. Meanwhile, the personal companies, including networking firms funded by the public’s savings invested through the cooperatives, continue their operations.

GB Rai allegedly funneled cooperative savings into his private companies such as Nature Herbs and Gorkha Ayurveda Pvt. Ltd., both of which remain active. According to an audit report, Swarnalaxmi Cooperative, operating in Kathmandu and Lalitpur, had savings totaling Rs 371,172,023 as of mid-July 2022. Of this, Rs 310,532,707 was reportedly misappropriated and invested as loans, indicating fraudulent practices.

The government has commenced refunding the savings of small depositors in distressed cooperatives since Monday, May 17. Approximately 76,000 depositors from troubled cooperatives are expected to be reimbursed around Rs 4.6 billion. Cooperative Minister Rawal stated, “Some cooperatives associated with GB Rai have become problematic, and many are facing issues.”