Swarnalaxmi Cooperative found to operate 12 bank accounts, funds missing

Kathmandu, November 5 — Investigations have revealed that the Swarnalaxmi Multi-purpose Cooperative in Kalimati, Kathmandu had operated accounts in 12 different banks. However, no money was found in these accounts.

According to police investigations, funds were systematically withdrawn from the accounts, indicating possible fraudulent activity. Authorities believe that the cooperative's chairman, Gitebabu (GB) Rai, and his group had the intention to embezzle funds when they withdrew the money.

The Kathmandu District Police is currently investigating the matter. The investigation has shown that the NMB Bank account under the cooperative's name had a zero balance, while there were minimal balances found in some other accounts. For example, there was NPR 10,000 in Everest Bank, NPR 560 in Nepal Investment Mega Bank, NPR 105,000 in a second Everest Bank account, and NPR 6,000 in Kumari Bank. Additionally, NPR 1,00,000 was found in the National Cooperative Bank.

One police official involved in the investigation stated, "Even in one bank account, just NPR 4 was found to be available." 

In another related development, it was discovered that Rabi Lamichhane had taken two loans from the cooperative, with vouchers recovered by the police.

Police investigations suggest that GB Rai’s group intentionally withdrew funds from the bank accounts to commit fraud. To date, 645 depositors have filed complaints with the police regarding the embezzlement of funds.

Kathmandu’s SSP, Basanta Rajaure, confirmed the investigation is ongoing and said, “The complaint of embezzlement was registered under the Kalimati Police Circle. We have brought the files into the district police headquarters and started the investigation.”

Preliminary findings show that the cooperative may have embezzled up to NPR 1.11 billion. Records show that 27,000 depositors had deposited a total of NPR 2.65 billion in the cooperative.

The investigation has expanded beyond the cooperative, with evidence showing that money was also diverted to other entities, including Gorkha Media Network Pvt. Ltd, Sano Paila Cooperative in Birgunj, Sahara Savings and Credit in Chitwan, and companies operated by GB Rai. Investigations are ongoing to trace where the money from these transactions went.

A court has issued arrest warrants for several individuals, including the chairman GB Rai, secretary Iran Lama, co-secretary Kabita Tamang, members Rabina Rimal and Hemanta Adhikari, manager Navin Achhami, and former chairman Deepak Lama. Additionally, arrest orders have been issued for 24 other individuals, including former manager Bhupendra Rai and former employees like Kalpana Kumari Shrestha. 

This investigation is being led by the Kathmandu District Police, which is continuing its probe into the operations of Swarnalaxmi Multi-purpose Cooperative and its associated companies.