Raj Kumar Thapa, the chief of the District Coordination Committee in Myagdi, has been arrested on the charge of embezzling Rs1.49 billion from the Beni-based Kumari Cooperatives.

Bharat Shrestha, chief of Myagdi police, said Thapa was arrested from his residence on Sunday morning.

Thapa’s alleged involvement in the scandal was revealed in a report by the Office of the Cooperative Registrar in Pokhara, which investigated the issue over a year ago. The report accused Thapa of misusing cooperative funds, channelling the money towards private schools and real-estate acquisitions.

On February 11, 2023, chair of the cooperative Yam Bahadur Rokka submitted a formal complaint to the registrar’s office, requesting a thorough investigation. The subsequent inquiry, led by financial analyst Nirmal Gautam, confirmed the embezzlement of Rs1.49 million.

Despite the findings, the Office of the Cooperative Registrar faced criticism for its delayed action against Thapa, with some alleging a reluctance to file a police report.

Myagdi police said they have launched an investigation into the case. Thapa is affiliated to the ruling party the CPN-UML.