Ashok KC, chairperson of Margadarshan Multipurpose Cooperative Limited based in ward 5 of Siddharthanagar Municipality, Rupandehi district, has been arrested on charges of embezzling over Rs59 million of depositors.

KC, a 34-year-old permanent resident of Melung Rural Municipality in Dolakha, was taken into custody on Wednesday evening, according to Deputy Superintendent of Police Ganesh Sapkota, spokesperson for the District Police Office, Rupandehi.

According to DSP Sapkota, KC was arrested by Bhaktapur police from ward 3 of Madhyapur Thimi Municipality.

KC had been on the run since May 3 after a case was filed against him under cooperative fraud and criminal offences related to fraud. Police say a warrant had been issued after victims accused him of misappropriating cooperative funds. He has now been presented before the court for further investigation.

Cooperative fraud has become an increasingly serious concern in Nepal in recent years. Thousands of depositors across the country have accused cooperative managers and owners of swindling billions of rupees in member savings—often disappearing after failing to return deposits or profits.

In the past year alone, several high-profile cooperative fraud cases have surfaced, triggering protests by victims in Kathmandu and other districts. Many depositors—often low- and middle-income earners—have staged sit-ins, demanding government action and compensation.

The government has formed multiple committees to investigate fraudulent cooperatives, but action has been slow.