Authorities have uncovered an embezzlement of Rs65.4 million from the Sunalo Bhavishya Savings and Credit Cooperative based in Besisahar, Lamjung, allegedly involving a coordinated effort by board members.

According to Bheshraj Rijal, head of the Cooperative Registrar’s Office in Pokhara, members of the executive committee approved suspicious loans, including Rs2.5 million issued to Indian nationals—an act deemed illegal under Nepali cooperative regulations.

The main office of the cooperative is located in Manang Chautari Chowk, Besisahar, with contact offices in Bhoteodar and Chiti.

An investigation by financial analyst Nirmal Gautam, commissioned by the registrar’s office, found that the board had fabricated borrowers and disbursed loans against poor-quality collateral—often provided by the board members themselves.

“The cooperative collapsed primarily because loans were not repaid by the officials who took them under false pretences,” Rijal said. The investigation concluded on October 15, 2024.

Following a formal complaint submitted by the cooperative’s incumbent chairperson Rishi Adhikari, the registrar’s office submitted its findings to the District Police Office on July 3. Police formally registered the case after 17 days on Sunday.

The embezzlement reportedly took place with the collusion of then-secretary of the cooperative Santosh Basnet, former chairpersons Padam Raut and Shiv Joshi, and board members including Hari Prasad Paudel and Kishor Basnet.

Adhikari, who assumed office three years ago, claimed the cooperative was already in financial distress when he arrived.

“Since my appointment, not a single rupee has been released for any investment,” he said, adding that he submitted a written request for an investigation last October.

He attributed the crisis to poor decisions made during the tenures of his predecessors, especially unreturned loans issued during their leadership. Notably, former chairpersons Raut and Joshi are alleged to have authorised loans to Indian citizens with instructions to repay the amounts once recoveries were made from the recipients.

So far, Rs750,000 has reportedly been recovered from them by the end of Asar (mid-July).

Inspector Rajkishor Teli Sah, spokesperson for the Lamjung District Police Office, confirmed that a report had been submitted and said investigations would proceed accordingly.

Over 1,300 people have deposited funds at the cooperative which was established in 2012.