The chairman of a cooperative in Baglung has been arrested on the charge of embezzling money from savers. The treasurer and manager have been remanded in custody. 64-year-old Narayan Shrestha, the president of the Nagadhunga Savings and Credit Cooperative Society in Falewas Municipality ward number-1 Karkineta in Parbat, was arrested in Kathmandu on Monday night, said DSP Ravin Bishta, head of District Police Office Parbat.

Before that, acting president and treasurer, 50-year-old Gilg Narayan Sharma and 26-year-old manager, Anil Thapa, have been sent to jail for remand by the district court. It is alleged that they have embezzled Rs 5 crore 64 lakh from the savers.

19 other directors and members of the cooperative, for whom arrest warrants have been issued, are absconding. After the complaint of 450 people including victim saver Kamala Sharma of Phalewas Municipality Ward No.1, the District Public Prosecutor's Office registered a cooperative fraud case against them on October 8. 

Treasurer Sharma and Thapa, who are also the chairman of the said cooperative, were sent to jail pending trial on the 7th of November. Sharma and Thapa were arrested on October 10 and Thapa on November 26. It is claimed in the indictment that they violated Section 122 of the Cooperative Act 2074 and Section 84 of the Gandaki State Cooperative Act 2075. As the owners have defrauded the amount of Rs 5.5 crore and 64 lakh, it has been demanded to pay the same amount and take additional action.

Based on the study report of Nirmal Gautam, a financial analyst and consultant from Pokhara, the Office of the Cooperative Registrar, the district attorney's office filed a cooperative fraud case against 23 people including them. Among them, 59-year-old Tilakant Sharma of Falewas municipality-1 has passed away.

Deputy Superintendent of Police Bista informed that the search is on for the absconding accused. There is a record that Sharma became the treasurer and coordinator of the loan committee from all the general meetings held since 2067. Also, two years ago, Treasurer Sharma became the Acting President after the then President was elected as a People's Representative. After that, it is mentioned in the study report that the money of the savers started being embezzled in the cooperative. It was also found that some members and savers who are less in touch with the managers have also mixed the money in the accounts of the managers and directors. It is also mentioned in the study report conducted by the registrar's office that Thapa, the manager of

, has made an uncollectible loan of 296.9 million rupees. After entering as a market representative in 2074, Thapa became a manager within a year. Thapa's statement states that the management has taken the savings saying that if the savers come, they will return it without interest, and the administrator will use the password. But later during the investigation, the manager accused Thapa of how we will pay the embezzlement, he has given a statement.

A complaint was filed after it was found that they had made a fake loan transaction and withdrawn more money. The Federal Cooperatives Act 2074 and the Gandaki State Cooperatives Act 2075 have provided punishments such as 4 to 6 years imprisonment, fines, etc. In this case, a fine of 87 lakhs has been demanded for Anil Thapa, 76 lakhs for Rudramani Sharma, 11 lakhs for Dhakaram Sharma and 96 lakhs for Deng Narayan Shrestha. Apart from that, fines and jail sentences have been demanded for other members as well. In the