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MP Maya Rai faces fraud charges over Swarnalaxmi Cooperative scam

The Kathmandu District Government Attorney's Office has filed a charge sheet against Nepali Congress (NC) lawmaker Maya Rai, accusing her of involvement in a multi-million rupees cooperative scam that includes allegations of organized crime and financial misappropriation.
By Republica

KATHMANDU, May 14: The Kathmandu District Government Attorney's Office has filed a charge sheet against Nepali Congress (NC) lawmaker Maya Rai, accusing her of involvement in a multi-million rupees cooperative scam that includes allegations of organized crime and financial misappropriation.


The charge sheet, registered at the Kathmandu District Court on Tuesday through a supplementary prosecution, includes a demand for the recovery of Rs 3.73 million allegedly embezzled during Rai’s tenure at Swarnalaxmi Cooperative. The case has been filed under fraud and organized crime.


According to investigators, Rai served as a member of the Swarnalaxmi Cooperative’s board during the fiscal year 2016/17 and later as assistant secretary in 2017/18 and 2018/19. During her tenure, the cooperative disbursed unsecured loans and made illegal investments in unlisted institutions, resulting in significant financial losses.


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The District Attorney’s Office stated that Rs 24 million (Rs 2.4 crore) was misappropriated while Rai held executive roles. Of this, Rs 8.9 million was embezzled during her term on the board. Investigators say the amount exceeded 10 percent of the cooperative’s capital — a violation of cooperative regulations.


Authorities reopened the case after earlier criticism over her exemption from prosecution. Police arrested Rai from Kapan on April 26 after public backlash grew over her alleged involvement.


The District Police Office found that Rai had signed minutes during committee meetings that approved questionable financial decisions. In her statement, Rai confirmed her signature but claimed she never visited the cooperative office or knew the other officials personally. She said she signed the papers at the request of an acquaintance, Bhupendra Rai.


Police have charged Rai and 21 others in connection with the case. On Wednesday, the court is scheduled to conduct a detention hearing to decide whether to keep Rai in custody during trial. She currently remains in police detention.


The case is part of a larger investigation into Swarnalaxmi Cooperative, where 690 depositors lost over Rs 1.19 billion. On January 5, prosecutors filed charges against 39 individuals for defrauding depositors through fraudulent schemes and poor financial management.


So far, 20 depositors have filed formal complaints against Rai and her co-defendants, seeking the recovery of lost savings. Officials say the ongoing investigation suggests serious organized financial crime.


 

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