Five persons, including Myagdi District Coordination Committee’s chief Raj Kumar Thapa, have been arrested in connection with the alleged embezzlement of Rs1.49 billion from the Kumari Multipurpose Cooperative in Beni, Myagdi. The accused, including prominent local figures, are suspected of misappropriating the cooperative’s funds.

Inspector Sagar Paudel, spokesperson for the District Police Myagdi, confirmed that the arrests were made on Sunday following a court order. Along with Raj Kumar, the arrestees include Man Prasad Thajali, Thamba Bahadur Garbuja, Rudra Bahadur Gurung, and Devi Kumari Thapa. Raj Kumar Thapa, who is believed to be the mastermind behind the embezzlement, was arrested early in the morning on Sunday morning.

The cooperative, which serves 4,386 depositors, was investigated by the Office of the Cooperative Registrar in Pokhara. According to their findings, the arrested individuals were primarily involved in the financial misappropriation.

Last year, the office assigned financial analyst Nirmal Gautam the task of investigating financial irregularities in the cooperative. The resulting report, submitted in early 2024, indicated that the suspects had used family members’ names to register shares, redirecting funds for personal gain and misappropriating money without interest. Raj Kumar, identified as the main architect of the scheme, allegedly diverted funds towards private schools and real estate acquisitions.

The cooperative’s shareholders and the general public have raised concerns about whether the political connections of the arrested individuals will affect the recovery of the embezzled funds or prevent them from facing proper legal action.