Distressed Krishi Savings and Credit Cooperative begins partial refunds to depositors in Bhaktapur

Bhaktapur. Depositors of the Krishi Savings and Credit Cooperative, based in Gatthaghar, Bhaktapur, which has been declared a distressed institution, have begun receiving their savings. The management committee formed by the Madhyapur Thimi Municipality has initiated the process of distributing funds to small-scale depositors, starting with those owed up to 10,000 rupees.

The municipality initiated this process by forming a seven-member expert management committee chaired by former High Court judge Binod Mohan Acharya. The cooperative was declared distressed on Jestha 17.

According to the committee, 538 depositors have filed claims seeking the return of approximately 220 million rupees. Individual deposits range from 400 rupees to 9 million rupees.

Committee spokesperson Krishna Prasad Paudel stated that preliminary investigations reveal only about 70 million rupees of the total savings were issued as loans, while the remaining 150 million rupees were allegedly misappropriated by the operators.

Cooperative chairman Tej Bikram Thapa is currently incarcerated in Nakkhu Jail on charges of embezzling billions from another cooperative in Kumaripati, Lalitpur. Other operators and most borrowers remain out of contact with the committee.

Spokesperson Paudel noted that the disappearance of vital documents and evidence has hindered loan recovery efforts. However, following the freezing of the movable and immovable assets of borrowers, some have begun to make contact. Approximately 4.5 million rupees have been recovered so far.

During the investigation, 500 ropanis of land registered under various companies owned by the cooperative were discovered in Surunga, Jhapa, and Takuwa, Morang. However, the committee has been unable to seize the land due to long-standing settlements by squatters who have obstructed land surveys.