The report of the Parliamentary Special Investigation Committee on misuse of cooperative savings funds has been published. The House of Representatives has published the report through its website. The report has made a detailed analysis of the shortcomings of the cooperative.

One of the issues of Gorkha media and cooperatives is as follows:

Cooperative fraud connected with networking business

Gitendrababu (GB) Rai and Unn's group are misusing more than 16 billion funds of cooperative savers and running a networking business. Rai was once a partner in the largest networking business Herbo International . While staying in that company, he opened the Gorkha Group of Companies in 2066. The government banned the networking business in 2068 . After that, Harvo was closed in Nepal and using the same network, about a dozen cooperatives were launched across the country. They are running networking business in 7 countries including Nepal under the names of Nature Herbs, Nature Nest etc. by misusing the money collected by the common people in the same cooperative.'

Gangs including GB Rai, who embezzle and abuse the savings of savers in cooperatives and illegally transfer the savings of cooperatives to private companies and individuals, have been in the networking business for a long time and have been embezzling funds from every organization by spreading and propagating cooperatives in a networking style.&nbsp ; It has been found that such co-operative operators expand the co-operatives in the style of a company and also misappropriate them by setting up loans in the name of others.

From GoldQuest through Herbo cooperative

From 2056 to 2058, a Hong Kong-run company called GoldQuest in Nepal seems to have raised money illegally by doing networking (direct sales system) by giving gold coins at the rate of 37,500 per person . In such a business, Gitendrababu Rai (GB Rai) . From the beginning he was connected through his brother Anantababu Rai. He also learned many trainings and skills called leadership development from the beginning by engaging in network business. Even after the Nepal government banned GoldQuest, he has started to indulge in such illegal business .

In the same way, many companies, including Herbi, are opened in the year 2061 to do the business of indigenous herbal products through networking. Anantababu Rai becomes the founding director of Hub and along with him his brothers Debendrababu Rai Milo and Gitendrababu Rai (GB Rai younger) also start working in the Herbo business and start working by organizing and organizing this business. Four companies operate by issuing marketing business guidelines. While others are trying to get permission, Herbo starts working with the government to provide stability. In the meantime, at the initiative of the representatives of domestic foreign companies, a notice of the cancellation of the directive is issued by the Minister of Commerce. This notice is a game to sink the investment of the stakeholders and 4 companies including Harvo file a petition in the Supreme Court. After the interim order of Judge Khilraj Regmi, the work resumes .

At this time, GB Rai gets married to Bhagwati Bamjan (Nisha Bamjan). Among his many cooperatives, Gyan Bahadur Bamjan, who is associated with Gorkha Savings, makes his son-in-law GB work at Suryadarshan in Pokhara and seems to have started living in Pokhara to work as an employee by making a side business in the middle of Harbo's work. Because GB Rai does not seem to be able to make a significant profit from Herbo . In Herbo, GB Rai is only seen in the role of a general leader and giving a presentation about Hubon .

In this way, it is seen that GB Rai entered the field of cooperatives by becoming educated and educated from network business using his in-laws' relationship and later took over the same cooperative and created a network of cooperatives like a network company all over the country .

From Sangat to Kamad, Swarnalakshmi

Herbo International Pvt. Anantababu Rai, who was the executive director of Ltd., had given his brother Gitendrababu a job in marketing. Later he went to work at Suryadarshan Cooperative Pokhara. The same Gitendrababu Rai founded Herby Group and formerly our group now Gorkha Group in the year 2068 Sangat Group Pvt. Ltd. Pushparaj Paudel (male) has been seen to have made various decisions. According to that decision, all assets and company were accounted for and placed in the Sangat group, but after taking all the shares and land, Gitendrababu Rai was not in contact and did not account. Those decisions could not be implemented . The matter of company operation is within the jurisdiction of the company registrar . It seems that Kamad Cooperative, which was established around 2062/063, was also taken over by the owners of other cooperatives  They used to make the bank account money by themselves. After the cooperative merger, they did not even make passbooks to the customers.  It seems that this committee has also received a request that it has not been accounted for by unilateral integration.

From Harbo to Gorkha Group 900 shareholders suffer

Harbo International Pvt. Ltd. Gokul Shrestha, the then president of Harbo, decided to give land to settle his accounts, but Gitendrababu Rai himself cheated both the companies by creating a bill of exchange. Therefore, the subject of these lands is still disputed.

Gokul Shrestha and Gitendrababu Rai worked together in the board of directors of Gorkha Group and were also seen as partners in other companies and bought the land. It is seen that Gokul Shrestha has taken more than 4 crores from Harbo and 12.5 million rupees from GB Rai, but now it is not seen that the land is in the name of the company. There is another dispute that both Gitendrababu Rai and Gokul Shrestha have cheated more than 900 shareholders of Gorkha Group including Pushparaj Purush by not giving documents and information.

Network of new companies, shares without investment

After Gitendrababu Rai came to the board of directors, Gitendrababu Rai, who operated Naturenest Pvt. Ltd. and 84 Food Company, Cotton Shooting and Shooting Company and Kamad Multi-purpose Cooperative, took a loan from Pranodayini Cooperative and Swarnalakshmi Cooperative, and all company assets. And it seems that after taking over the cooperative, no account was shown in the audit and the loan was not removed from the names of Khimanand Kandel and Pushparaj Purush and the investment was also not accounted for. After taking over the company, the debts of the company should also be taken over, but GB Rai misused money and power, but did not settle the accounts .

Gitendra Babu Rai (GB Rai) has been seen repeatedly buying and selling shares in the name of his employees to avoid legal hassles after being prevented from running a happy company. It seems that action has to be taken as there is a request that the company has been controlled by creating a majority. His partners are still crying that he made the property private.

Rai then bought 2 houses in Tinkune, about 300 ropani land in Kavre and Makwanpur Thingan, more than 6 ropani land in Godavari, 14 ropani land in Bandigaon. , 20 ropani land in Badikhel and more than 5 ropani land in Bhaktapur, including the investment properties of other associate members were transferred to different names, but after taking the company and properties according to the agreement, Gokul Shrestha and GB Rai did not account for it, and because they ran away with the company and property, fraud of around 500 million was committed. is done .

Hub's software of 250,000 people was taken to a private company called Nature Herbs and GB Rai used it and illegally collected 25/30,000 money from each person as an update of Herbs without even giving them 25/30 million money. There is also a demand of the Pushparaj Group to investigate all the transactions of Nature Nest and Nature Herbs as they have created a paper that has been removed from all the companies without notifying the shareholders by transferring the shares in the names of their subordinates overnight. Retired police sub-inspector Chabilal Joshi joined the same Nature Herbs Company as a business partner of GB Rai in 2077. At the same time, Joshi also became the president of Direct Selling Association representing Nature Herbs.

8/900 shareholders who have invested 1/1 lakh in Gorkha Group of Companies have started demanding a special general meeting . After holding a special general meeting, the new board of directors will investigate and look at the accounts. Since Gorkha Group is not a private limited company and is a limited company, it has been seen that a new board of directors should be formed through a general meeting. Information about how much money of the cooperative has been embezzled will come later.

Overall, GB Rai's group has been lending cooperative money to individuals and companies under Harbo and Gorkha Group, taking shares in exchange for loans, slowly deceiving all the creditors and seizing all the assets and companies and ensnaring the debtors through some legal restrictions and many companies. And property has been seized.

Reveals the close associates who were seen to have seized the shares and property of various individuals and companies by misusing the funds of the cooperative while deceiving the one they worked with.

GB Pushparaj partnership

After that, while building a network of cooperatives across the country, he met Pushpa Raj Purush, the owner of the company he worked for himself in the process of taking a loan . 68 years in Chait, Unity Life International Ltd. In the case of authorized chairman Kashiram Gurung against the office of the Prime Minister and the Council of Ministers, the joint bench of Justices Bharatraj Upreti and Shusila Karki instructed to enact a law upholding the repeal of the directive, and Herbo's network business is closed. It is constitutional in the Government of Nepal that when it comes to public knowledge that the property rights of the common people have been affected by the illegal transactions and other irregular activities conducted by any person, organization or company, the people have been cheated and cheated. Responsibilities and duties. (Chapter No. 4)

If the Government of Nepal draws the attention of the authorized body or writes a letter stating that it will take legal action against the culprits by referring to the true facts mentioned in the report, it cannot be assumed that the authority of the authorized body will be interfered with according to the law or that their jurisdiction will be limited. (Chapter No. 5) It cannot be assumed that the company has received permission to collect deposits from the general public and conduct banking business just because the director of the

company or the company itself is on the board of directors of a development bank. (Case No. 8)

It cannot be assumed that the company's right to do business has been affected due to the fact that the government of Nepal has investigated the matter of illegally deceiving or deceiving the general public or doing things that are against their interests. (Chapter No. 16) The principle of independent existence and limited liability of the

company is a facility given for commercial convenience and this facility is available only in relation to transactions conducted or conducted in accordance with the predetermined objectives of the company in accordance with prevailing laws. Basically, if the following conditions are proven, the company's founders, directors, employees or other persons who are found to be involved in illegal or irregular activities will be held personally liable if the company's cover is removed:

• If it is seen that the cover is used,
• In case the cover of the company is used only for the benefit of a person or other entity and not for the benefit of the company,
• If the cover of the company is used for revenue leakage or tax evasion, 0 Residential Status of a company (Residential Status) To discover . (Chapter No. 19) If it is found that illegal business is conducted in the name of
• company, the authorized body can take necessary legal action against any person who is considered to be the founder, director, employee and its representative of the company according to the prevailing Nepalese law. . (Chapter No. 20)
• Company is not a physical entity but intangible, so it cannot be imprisoned, since it does not have an independent mind, brain or thinking mind and soul, it does not have a condition of self-immolation, so there is no criminal criminal intent (Mens Rea). Unable to keep or carry .

• Since the business of the company is conducted through organs or positions or committees such as the general assembly, board of directors, managing director or manager, which are operated from the minds of the founders or shareholders, generally: there is no condition to punish the company for any criminal offense that requires the presence of a mental element .
• When there is a clear provision in an act that the director, employee or person working on behalf of the company is personally liable for punishment, action can be taken against the director, employee or person working in the name of such company for such an offense. (Chapter No. 21)
• The company cannot escape from the civil liability created in the process of conducting the business of the company. If a person's property is damaged or someone dies due to any work or action done in its name, the company has the duty to provide compensation or appropriate relief to the affected parties, and in such a case, the company cannot take the claim or zikr of the company's intangible existence or unintended condition.

• The company cannot escape from the responsibility of providing the compensation or relief by showing the technical basis and reason that the director, employee or other person working on behalf of the company has suffered damage or that such right was not given to them by the company . For this, the necessary payments may be made using the company's funds and assets. If the prevailing law envisages an absolute criminal liability (Strict Liability Offense), if the company's involvement in such a crime is found, it will be fined accordingly. But since the company does not have physical existence, such an intangible and immaterial person cannot be punished with imprisonment.
• The extent of criminal liability of companies should be considered extremely limited as the founder, shareholder or its employees or other persons involved in criminal acts acting on behalf of the company are personally punished for such criminal acts. (Chapter No. 22)
• But at that time, even though the company could be run in other ways after closing the network, there was also a feature of Habonwalas that some group was active to make a market by selling herbs including Herbo. It seems that GB Rai took a lot of company and property by paying some money with the intention of killing Mr. property and company of the directors after getting into trouble. After the
• , after the court instructed to make a law of network business, the law was started to be made and the Parliament passed the "Management and Regulation of Direct Sale of Goods Act, 2074", but it did not have the minimum legal provisions that should be in the network, but the Department of Commerce showed the same law to the companies doing the network. It has been seen that 2 dozen companies that have been allowed and currently are doing a network in the market under the name of direct sales system.
• In this way, how much investment has gone out with the public debate that the money of the cooperative has been invested in 6 countries outside of Nepal by creating a network? More research is needed regarding that. It has been seen that 8-900 people have been mistreated by forming a Gorkha group of companies after occupying them. It is also the quality of the shareholders that they have increased their share to make their majority in Gorkha Group. Since this company is a limited company, it seems that justice should be done to the shareholders by forming a new board of directors after investigation.
• conclusion
• Overall, GB Rai's group lends cooperative money to Habon and Gorkha group's subordinates and companies, takes shares without investing in loans, gradually cheats all creditors and seizes all assets and companies and gives some legal sanction to debtors. It has been seen that they are cheating and taking over the company and property of many people. It seems that all these matters should be investigated and action should be taken by giving instructions to all concerned bodies.