The co-operative sector has been under a lot of pressure for the last few years. Due to lax regulations and institutions operating against the rules and principles of cooperatives, many common people's savings have sunk into cooperatives. From the director of the organization, even the top leaders of the political parties seem to be involved in embezzling the funds of the cooperative.

The government has not been able to solve the problems of the government sector for a long time due to the presence of powerful and influential people. Millions of savers have been disturbed by this and it is not yet clear when they will get their money back.

All the governments of Nepal are aware that there is a problem in the cooperative sector and that it should be solved. Since the year 2024, the government has repeatedly constituted a suggestion committee and asked for a report for the management and problem solving of the cooperative sector. Every committee has also submitted its report. However, the problem of the cooperative has not been resolved, nor has the victim received the money back. This has led to the loss of citizens' trust in the cooperative sector itself. The basis of the overall economy has also been shaken. From 2024 to last year, 13 suggestion committees have been formed for the reform of the cooperative sector. Some of his reports seem to have been implemented normally. But the problem is you.

88 billion embezzlement from only 40 cooperatives

According to the special parliamentary investigation committee on the misuse of cooperative savings funds formed under the coordination of UML leader Surya Thapa, 87.89 billion common people have been embezzled from 40 cooperatives operating in the main city. 40 cooperatives, 18 of which are problematic and publicly questioned, have a liability of 87.89 billion with a savings amount of 71.3 billion. However, it is mentioned in the report that the interest to be raised on loans, investments made elsewhere and the basis for raising non-banking assets are weak.

13 of the 22 problematic cooperatives have disbursed loans amounting to 21 billion 378 million 96 thousand 427 rupees against the law. 18 cooperatives that have raised public questions have disbursed loans of 32 billion 40 million 61 lakh 19 thousand rupees. Out of these, 6 cooperatives have provided loans of Rs. It is mentioned in the report that 31 cooperatives including 18 and 13 have disbursed 53 billion 78 crore 51 lakh 16 thousand 196 rupees.

In addition, eight cooperatives with problems have invested 2.73 billion 360 thousand rupees. 15 crore 93 lakh 98 thousand rupees have been invested from 18 cooperatives that raised public questions. A total of 2 billion 88 crore 97 lakh 59 thousand rupees has been embezzled in the name of investment. In a decade, 669 people have been arrested by the police, 1,540 people are absconding. Most are rich and powerful. But all those arrested are in jail pending trial. This also reveals how terrible cooperative fraud is in Nepal from the data on the arrest of the accused.

• 669 jailed for co-operative fraud, 1,540 fugitives

According to the recommendation for action by the Parliamentary Inquiry Special Committee, Ravi Lamichhane, chairman of the National Independent Party, former DIG of Nepal Police, Gorkha Media's then owner Chabilal Joshi, are still in prison. In a decade, the police arrested 669 people based on 258 complaints filed by 24,224 victims. Meanwhile, 1,540 are absconding.

111 cases have been registered after the police investigated and submitted a report on these complaints. 1 thousand 391 people have been accused in this case. 1 billion 90 million 46 million bigo has been established in the case that reached the court. Punishment has been fixed in 35 cases of cooperative fraud while 58 cases are pending. Some cases are in the public prosecutor's office for appeal.

Former MP Ichcharaj Tamang, who ran not only the cooperative, but the Civil Bank, is also in Dillibazar jail. Tamang has been sentenced for embezzling about 8 billion collected by the common people in civil cooperatives. He has also been convicted of money laundering. The once famous Kantipur Savings and Credit Cooperative (cooperative organization) chairman Himalayavikram Malla Thakuri and director Chandra Bahadur (CB) Lama are in Dillibazar jail. About 8 billion rupees have been embezzled from this cooperative. Rashtriya Sahakari Bank and Ideal Yamuna Our Multipurpose Cooperative Society President Krishna Bahadur (KB) Upreti is in Dillibazar Jail. Many involved in misappropriation of cooperative funds are still absconding.

Parliamentary Special Committee has concluded that 655.4 million savings of five cooperatives were misappropriated in Gorkha Media Network. It is for this reason that action has been recommended against the company's chairman Gitendrababu (GB) Rai, the then managing director Ravi Lamichhane and directors Chabilal Joshi and Kumar Ramtel.

Lamichhane, who is also the former home minister and president of the RSVP, has been charged with fraud, racketeering, money laundering and organized crime against the four directors of Gorkha Media. Among the four directors of Gorkha Media, who were named in the 65 crore fraud, Chairman Rai is absconding, while Lamichhane, Joshi, Ramtel are in jail pending trial. It is mentioned in the report that the committee has found evidence that around 50,000 savings of Pokhara's Suryadarshan, Butwal's Supreme, Chitwan's Sahara, Birganj's Sano Paila and Kathmandu's Swarnalakshmi Sahakari were brought to Gorkha Media and spent under the signature of Managing Director Lamichhane.

UML's former MP Ichcharaj Tamang, Devkumar Nepali who was twice elected as mayor from UML, KB Upreti, Secretary of UML Cooperative and Poverty Alleviation Department and CB Lama who became a candidate for Kavre from Congress in the 2070 election are in jail, RPP MP Geeta Basnet is absconding for 6 months, RPP Chairman Lamichhane is in custody. This confirms the participation of political parties in embezzlement of cooperative funds. How terrible cooperative fraud is in Nepal is evident from the statistics of the arrest of the accused involved in it. The police have arrested 669 people in almost a decade, while 1,540 people are absconding.

case against 39 including GB  and Ravi in ​​Swarnalakshmi cooperative fraud involving 5,000 savers

Former Home Minister Ravi Lamichhane is the then Managing Director of Gorkha Media Network. Suryadarshan of Pokhara, Supreme of Butwal, Sahara of Chitwan and Swarnalakshmi Sahakari of Kathmandu were embezzled by bringing them to Gorkha Media of which GB Rai is the president and Lamichhane is the managing director. Rai, chairman of Gorkha Media, is absconding, while director Kumar Ramtel is in jail pending remand.

Company's then director and former DIG Chabilal Joshi is in police custody. Devkumar, the mayor of Baglung's Dhorpatan municipality, who was arrested on charges of co-operative fraud, was on the run since May 2080 after sinking the savings of Nepali Image Co-operative. In January 2080, at the request of the Nepal Police, Interpol issued a 'Red Notice' against Nepalese. Indian police arrested him from New Delhi at the request of Nepal police.

By opening Image Cooperative in Baglung and Pokhara, his group embezzled more than one and a half billion of money from more than 1,500 savers is pending in the Baglung District Court. The savings of Chhibhape in Nawalparasi, Sunrise in Chitwan and Namaste Cooperative in Bardia were illegally taken to Krishnasar Resort in Bardia and embezzled. However, the police who investigated have filed a case against the resort's owner and RP MP Geeta Basnet along with the cooperative operators. She has been absconding for five months after the arrest warrant was issued.