Pokhara Cooperative Embezzlement Scandal: Chairman, Manager Among Seven Arrested

More than Rs 880 million (Rs 88 crore 70 lakh) has reportedly been embezzled from the Pokhara Savings and Credit Cooperative through collusion between its management, staff, and executive committee members.

The main office, located in New Road, Pokhara, was allegedly used as the center of large-scale financial irregularities. According to police sources, those arrested include Chairman Surendra Bahadur Godar, Manager Bhishma Prasad Gurung, current supervisor and market head Bedi Prasad Subedi, Secretary Dil Bahadur KC Khatri, and Treasurer-cum-Loan Coordinator Hira Mani Dahal, among others.
Former secretary of the board Indra Prasad Dwa and board member Dorje Tamang were also arrested in connection with the case.

Police Begin Investigation Under Court Supervision

Police said the suspects were arrested Wednesday morning under a warrant issued by the Kaski District Court, based on serious allegations of financial misconduct, fraud, and misuse of cooperative funds.

Kaski District Police Chief SP Navin Karki confirmed that the investigation has been initiated after the court granted extended custody. “Preliminary findings suggest that cooperative principles and values were violated, and the members acted against the interest of depositors,” Karki said.

Audit Reveals Collusion and Fraudulent Accounts

According to the investigation report by the Registrar’s Office of Cooperatives, Gandaki Province, board officials and management colluded to misuse depositors’ funds for personal financial gain.

The report states that fictitious accounts were opened in the names of individuals and cooperative entities to divert funds disguised as loans and advances, violating the Cooperative Act. It also revealed that loans were transferred in the names of officials, who then used borrower assets for personal benefit.

The study found that several imaginary loan and advance accounts were created to launder money and conceal illegal sources of wealth. Funds withdrawn in the name of loans were allegedly used to acquire private properties and for personal enrichment.

Financial Misconduct and Money Laundering Alleged

The Registrar’s report further recommends that both current and former officials, including the chairman, manager, and executive members, be investigated under cooperative fraud and money laundering laws.

Financial analyst Nirmal Gautam, who prepared the analysis report, has suggested a detailed investigation into asset laundering and irregular financial management under the Cooperative Act and Anti-Money Laundering Act.

Timeline and Background

The current executive committee, led by Surendra Bahadur Godar, was elected on Bhadra 6, 2078 BS. Before him, the cooperative was chaired by Ash Bahadur Gurung, Phanindra Raj Sharma, and Bijay Maharjan.
The cooperative was originally established on Baisakh 12, 2059 BS, under the leadership of Bijay Maharjan.

The investigation is based on the cooperative’s daily transaction records up to Jestha 14, 2082 BS, and an official letter from the Registrar’s Office dated Jestha 11, 2082 BS, which initiated the inquiry.

According to system records, the cooperative currently has 3,056 shareholder members and operates across Kaski District.

Further Arrests Possible

SP Karki said that police have already detained seven key suspects and presented them before the district court for remand extension.
He added that others involved in the embezzlement and fund misuse will also be brought under the legal process as investigation expands.

Other cooperatives in Pokhara — including Suryadarshan, Prime, Bindhyabasini, Mitramilan, Image, and Balidani Savings and Credit Cooperatives — are also under investigation for similar embezzlement and financial irregularities.