KATHMANDU, Sept 11: The government declared the Civil Savings and Credit Cooperative problematic more than two years after the cooperative failed to return the money of its depositors.

A ministerial level meeting of the Bagmati Province last week declared the Civil Cooperative as problematic. With the decision, the provincial government has asked the cooperative not to conduct its general meeting.

The cooperative fell into financial crisis after it provided excessive loans to Civil Homes, a real estate developer company run by the cooperative’s chairman Ichchha Raj Tamang. The cooperative has been alleged of embezzling over Rs 7 billion of its depositors’ money.

Tamang has been accused of amassing illegal assets totaling over Rs 3.31 billion. Similarly, cases have also been filed against his wife Srijana Shakya Tamang and his daughters Pratikchya Tamang and Pratistha Tamang.

A total of 1,499 depositors have filed complaints against Tamang. He was found unlawfully investing more than Rs 8 billion of the money deposited in the cooperative in his 21 various other companies.

 
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