KATHMANDU, Jan 2: The police submitted an investigation report to the District Government Attorney’s Office (DGAO), Kathmandu, recommending legal action against 44 individuals including former Rastriya Swatantra Party (RSP) Chairman Rabi Lamichhane for their alleged involvement in the misappropriation of funds from Swarnalaxmi Savings and Credit Cooperative. As per the report, police have sought Rs 1.19 billion in fines from the defendants.
An investigation by the District Police Range (DPR), Kathmandu, found that Swarnalaxmi Savings and Credit Cooperative operators misappropriated Rs 1.19 billion out of Rs 2.66 billion deposited by 5,669 individuals. The police prepared a report recommending that 44 individuals including Gitendra Babu (GB) Rai and former DIG Chhabilal Joshi who were allegedly involved in the misappropriation be made defendants and that a claim for damages equal to the misappropriated amount be filed against them.
The spokesperson for the DPR, SP Nabaraj Adhikari, stated that the investigation report was submitted to the DGAO on Thursday. “We couldn’t submit the investigation report on Swarnalaxmi Savings and Credit Cooperative to the DGAO on Wednesday due to time constraints, but it was submitted on Thursday,” SP Adhikari said.
SP Adhikari informed Republica that the report has recommended the DGAO to seek Rs 60 million from Lamichhane as fines. It has been found that Lamichhane also took loans twice from the cooperative and repaid some of the amount. According to police officers involved in the investigation, GB Rai and Lamichhane had taken loans under joint account names.
Swarnalaxmi Cooperative case: Rabi and 44 others to be made def...
On August 20, 2021, they took a vehicle loan for a two-wheeler, and on October 18, 2021, they took a loan for purchasing an “Eco Seven-Seater” van. The records from Swarnalaxmi reveal that they borrowed Rs 4.698 million for the four-wheeler loan out of which Rs 3.221 million remains unpaid. Similarly, they took a loan of Rs 4.688 million for purchasing the "Eco Seven-Seater Van," of which Rs 2.952 million remains unpaid, as revealed by the investigation.
The investigation has found that Swarnalaxmi Savings and Credit Cooperative in Kathmandu disbursed loans to 12 companies, including Herbo International Pvt Ltd and Gorkha Media Network, violating the Cooperative Act and regulations.
According to SP Adhikari, the 12 companies that received loans include Devdeep Agri Export, Mandara Tours and Expedition, Gorkha Herbal Production, Kumkum Herbal Industries, New Sulax Offset, Gorkha Group of Companies, Saregama Records, and Bhagwati Baluwakhani.
On November 6, Sunita Newa, a member of the Accounts Committee of Swarnalaxmi Savings and Credit Cooperative, was arrested, and on November 11, Kamal Lama, a member of the Loan Subcommittee, was also arrested. The police have prepared a report recommending that 44 individuals, including Rai, former DIG Joshi, Deepak Lama, Kumar Ramtel, and Nabin Achhami, who were involved in the misappropriation of funds from the cooperative, be made defendants and legal action be taken against them. Lama is Rai’s brother-in-law.
The operators of Swarnalaxmi Cooperative were accused of embezzling public deposits, leading depositors to file a complaint with the police on April 28. After the cooperative failed to return the savings for two years, the depositors registered a complaint at the Kalimati Police Station. They staged protests, claiming that the operators had fled without returning their deposits.
The depositors filed complaints against the former chairperson of the cooperative, Kalpana Shrestha (who served as chairperson in 2017), Deepak Lama (who became chairperson in 2021), GB Rai (who became chairperson in 2023), cooperative manager Nabin Achhami, and Lamichhane. The police began the investigation after the cooperative failed to return the savings to the depositors.
A red corner notice has been issued by the Interpol against GB Rai, the mastermind behind the misappropriation. He has been charged with embezzling funds from Surydarshan in Pokhara and Supreme Cooperatives in Butwal, and a case has already been filed against him in court.
The police have seized 35 vouchers related to the illegal loans disbursed under the names of Rai, Lamichhane, and others, and are continuing their investigation.
It has been found that Rs 18.2 million was illegally embezzled from Swarnalaxmi Cooperative to Gorkha Media Network. Rai, Lamichhane, and others involved in the case have not repaid the Rs 18.2 million taken from Gorkha Media. Currently, a detention hearing is underway at the Kaski District Court in another case against Lamichhane.
