KATHMANDU: The Baraha Savings and Loan Cooperative Society in Dharan has been locked down by police after accusations of embezzling billions of rupees from savers.
The cooperative’s office was sealed, and nine individuals associated with the organization have been arrested over a span of three days.
Those arrested include board members, accountants, and loan committee members. Among them are Bishnu Tamrakar, Apna Shrestha, Asmita Bhandari, Sudin Lwagun, Sher Bahadur Mahat Chhetri, Sarita Kalikote, Ravi Portel, and Jatan Maya Bishwakarma.
Additionally, Sangeeta BK, the wife of cooperative chairman Man Bahadur Bishwakarma, and Sudha Kalikote, wife of the loan subcommittee coordinator, were also arrested after their husbands failed to be located.
The police have seized the cooperative’s computers and financial documents from its office in Dhankutemarg, Dharan, as part of the ongoing investigation. They have handed over the keys of the sealed office to the Dharan Sub-metropolitan City.
While nine people have been arrested, key figures such as Barah Group of Companies Chair Shiva Lamichhane and cooperative chair Man Bahadur Bishwakarma are still absconding.
It is alleged that they, along with other cooperative operators, have embezzled over Rs 14 billion, affecting thousands of savers.
According to police spokesperson DSP Ram Prasad Timsina, a public notice has been issued requesting savers and shareholders to file complaints.
As of now, around 90 complaints have been filed, and authorities expect up to 8,000 more complaints as savers come forward.
The scandal has sparked outrage among the victims, many of whom are members of the ex-British Gurkha community in Dharan.
The cooperative, which once offered high-interest rates to attract depositors, is now under intense scrutiny. Despite promises from the cooperative leadership, including an appeal by Chairman Shiva Lamichhane in September, savers have yet to recover their lost funds.
Baraha Group, which operates several businesses, including Barah Jewellery Industries Pvt. Ltd. and branches in multiple countries, has faced widespread criticism for its alleged financial mismanagement and fraudulent activities.
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