Krishna Prasad Jaisi, who filed a complaint against Rashtriya Swayamsevak Sangh (RSS) President Rabi Lamichhane in the Surya Darshan Savings and Loan Cooperative Society embezzlement case and led the movement as a 'victim', has himself been arrested on charges of cooperative fraud. The District Police Office, Kaski, has taken him into custody on charges of embezzling funds from the Dhanush Savings and Loan Cooperative Society, which has an office in Nayabazar, Pokhara.

The Gandaki Province Cooperative Registrar's Office had filed a complaint with the police on Sunday for investigation against Jaisi and others based on a report by financial analyst Nirmal Gautam. According to the report, a total of Rs 125.6 million was embezzled from the Dhanush Cooperative Society. Jaisi was arrested after it was revealed that he had embezzled Rs 8.2 million by creating an artificial account while serving on the cooperative's loan subcommittee.

Jaisi was previously in the news for the fraud case against the Surya Darshan Cooperative Society. During the last election campaign, he had handed over a bill to Kaski Constituency No. 3 candidate Bina Gurung, saying that he could not pay his son's school fees. He had also led a movement against Rashtriya Swayamsevak Sangh (RSS) President Lamichhane and GB Rai, claiming that he could not pay his son's 'fee' because his money was sunk in Surya Darshan. Lamichhane was arrested and released on a bail of Rs 6.5 million after spending 84 days in custody.

The financial analysis report of Dhanush Cooperative has shown that the organization's total embezzlement has reached Rs 191.8 million, but Rs 125.6 million is yet to be reimbursed. Apart from Jaisi, 13 other people have also been made defendants in this organization formed by the merger of the former Saino and Dhanush Cooperatives. Although the police confirmed the arrest of Jaisi, they said that they are searching for the other 4 as they are absconding.