The past few years have witnessed a series of shocking financial scams involving co-operative finance companies in Nepal. From large-scale embezzlement to fraudulent land plotting schemes, these scams have left ordinary depositors in distress and financial ruin. What's even more concerning is the lack of government oversight and central bank monitoring, which has allowed these scams to thrive, leaving many to wonder if the country is operating without a functional government.
Shivshikhar Co-operative: A Scam Five Times Larger than Infamous Oriental Case: In a shocking revelation, Shivshikhar Co-operative has been exposed as perpetrating a financial scam five times larger than the infamous Oriental Cooperative Society case. Mastermind Kedarnath Sharma Neupane allegedly embezzled a staggering 15.5 billion rupees from ordinary depositors through Shivsikhar Multipurpose and Tulsi Cooperative. The impact extends to banks with substantial loan investments in Sharma's various companies. The case raises questions about the regulatory framework and the government's ability to protect depositors' interests.

Image Cooperative Scam: Savers Left Struggling as Chairman and Manager Flee with Billions: Image Savings and Loan Cooperative's chairman, Dev Kumar Nepali, and manager, Deepak Paudel, have fled with an estimated 2 billion rupees, leaving numerous depositors, including hardworking citizens and Tibetan refugees, in financial ruin. Victims recount their struggles to retrieve their savings, as the chairman misused funds to buy land, then sold it back to savers at inflated prices. The need for stronger regulation and government intervention to protect depositors' money is evident in this distressing case.
Pashupati Cooperative Scam: Savers Deceived by Land Plotting Scheme:: Pashupati Savings and Credit Cooperative faced allegations of deceiving savers through a land plotting scheme. Chairman CB Lama allegedly misused deposit money to buy land and pressured savers to buy it back at inflated prices. Savers are left grappling with the consequences of their deposits' misuse and the lack of action from the cooperative department. This case highlights the urgent need for proper regulatory measures and government accountability to prevent such fraudulent schemes.
Sumeru Cooperative's 10 Billion Embezzlement Scandal: The Great Escape to Britain:: Sumeru Cooperative owner Bharat Maharjan embezzled over 10 billion rupees from common people's savings. He built an extraordinary business empire while presenting himself as a social worker. His escape to Britain and orchestrated fake divorce exposed the extent of his deceit. The lack of government oversight and failure to protect the interests of savers raise serious concerns about Nepal's financial system.

SERIES-1/Shivshikhar Co-operative has been exposed as perpetrating a financial scam five times larger than the infamous Oriental Cooperative Society case.:::
Kathmandu, Nepal - In a shocking revelation, Shivshikhar Co-operative has been exposed as perpetrating a financial scam five times larger than the infamous Oriental Cooperative Society case. Kedarnath Sharma Neupane, the mastermind behind the scam, allegedly embezzled a staggering 15 and a half billion rupees from ordinary depositors through Shivsikhar Multipurpose and Tulsi Cooperative. Additionally, he obtained 5.5 billion rupees from various banks under his investment, resulting in a total fraud amount that dwarfs the Oriental case. Sharma, who had been evading authorities for an extended period, was finally apprehended in India recently. The investigation revealed that the funds of Shiv Shikhar Cooperative had been channeled into 43 private companies under the Shikhar Organization, named after Sharma and his family. Approximately 6 billion rupees were traced to India, with the remaining amount still unaccounted for. The accused claimed to have invested in the food sector in India, partnering with local entrepreneurs in businesses such as pulses and rice. It is believed that Sharma's political connections in India may have played a role in his ability to flee the country. The impact of the scam extends beyond the co-operative's resources, as billions of rupees from banks' investments are also at risk. Some loans were provided without adequate collateral, putting the banks' funds in jeopardy. The Nepal SBI Bank is among the institutions with substantial loan investments in Sharma's various companies. Shivshikhar Cooperative operated through 35 branches across the country, collecting funds from depositors. However, the co-operative has been unable to repay depositors for over a year, leaving them in financial distress. The Tulsi Cooperative, with Sharma as its president, faces a similar situation, with more than 1 billion 45 crore rupees in deposit liabilities. The chairman allegedly invested over 41 crores of loans in his private company, further exacerbating the financial crisis for depositors. Sharma's financial wrongdoings extend beyond the co-operatives, as he reportedly used depositor savings to build private properties, including a four-storey building and a garden mart in Udaipur. The situation has led to a wave of complaints from depositors across the country, with 1,292 depositors from Bhaktapur branch and over 5,200 savers from the Kirtipur branch seeking the return of their funds. The total number of affected savers in Tulsi Cooperative amounts to 21,154. The Co-operative Act of 2074 prohibits the misuse of savings and funds for purposes other than investing in loans among members, purchasing government bonds, or real estate investments. The act also forbids embezzlement of property savings or not maintaining collateral for loans. Authorities have arrested several individuals connected to the fraudulent activities, and the investigation continues to uncover the full extent of the financial crime. The Nepalese government and Nepal Rastra Bank face scrutiny for their alleged negligence in addressing the financial pain and burden faced by the public. As the case unfolds, the nation awaits justice for the affected depositors and a thorough examination of the regulatory framework to prevent such financial crimes in the future.
SERIES-2/Image Cooperative Scam: Savers Left Struggling as Chairman and Manager Flee with Billions:::
Pokhara, Nepal - The once-hopeful savers of Image Savings and Loan Cooperative in Sirjanchowk now find themselves in distress as the cooperative's chairman, Dev Kumar Nepali, and manager, Deepak Paudel, have absconded with an estimated 2 billion rupees. The fraudulent scheme has left numerous depositors, including hardworking citizens and Tibetan refugees, in financial ruin. Shanti Bi.Ka, a 40-year-old woman who returned from Kuwait, deposited 1.8 million rupees in Image Cooperative to secure her daughter's education and start a venture. Similarly, Tasi Wangdu and Namdu Lama, Tibetans from Hemja and Prithvi Chowk camps, respectively, invested their savings in the cooperative due to its promised high interest rates. Now, with the directors gone, they are left in despair, pleading for the culprits to return and resolve the crisis. Kopila Gayre, another depositor, hoped to use her 16 lakh rupees in the cooperative to invest in land. However, after hearing the news of the directors' disappearance, she was heartbroken, unsure of how to proceed. Dev Kumar Nepali, who had previously served as the mayor of Baglung's Dhorpatan Municipality, founded Image Cooperative, both in Baglung and Pokhara. The cooperative saw rapid growth, but this was fueled by misappropriation of funds. The turnover of the cooperative was reported to be 65 million rupees, but it only had around 15 million rupees invested as loans. Investigations revealed that money collected in the cooperative was misused for personal gain. The chairman and manager were accused of buying properties and land using the cooperative's funds. Efforts to track down Dev Kumar and Deepak have so far been unsuccessful, with arrest warrants issued against them. A committee formed by the victims is leading protests against the fraudulent scheme, with over 394 complaints filed, claiming losses exceeding 65 crores rupees. The cooperative's chairman had agreed to return the savers' money, but he disappeared shortly after, leaving depositors in turmoil. With the chairman's luxurious lifestyle and extravagant expenditures, no one imagined that such a large-scale scam would come to light. Dev Kumar's ambitions and misuse of the cooperative for personal interests have left the innocent savers in disarray. As investigations continue and authorities seek to bring the culprits to justice, the affected savers hope for a resolution to their financial woes and a brighter future free from such financial crimes.
SERIES-3/Pashupati Cooperative Scam: Savers Deceived by Land Plotting Scheme::: Kathmandu, Nepal - Pashupati Savings and Credit Cooperative has come under scrutiny as numerous savers have been deceived by a land plotting scheme, leaving them in financial distress. Chairman CB Lama stands accused of misusing the deposit money to buy land in the name of individuals and companies, then pressuring the savers to buy the land back at inflated prices. One of the victims, Surjalal Tiwari from Chitwan, deposited a substantial sum of 1 crore 26 lakh rupees in Pashupati Cooperative. As the cooperative fell into a crisis, Tiwari repeatedly requested the return of his fixed deposit but was met with promises and excuses. Eventually, the cooperative proposed offering land as an alternative, which Tiwari reluctantly agreed to, hoping to recover his money. However, the land's actual value was far less than the price set by the cooperative. Similarly, Dilliprasad Timalsina from Kathmandu faced a similar situation with 20 lakh rupees deposited. After much struggle, the cooperative offered 18 dhur land in Chitwan, but Timalsina had to take a 3 million rupee loan and pay an additional 1.5 million for land plotting and utilities. Shobha Khadgi's family from Kathmandu, with a deposit of 38 lakhs in Pashupati Cooperative, was also persuaded to buy land worth 59 lakhs by adding 19 lakhs to their savings, without knowing the land's location. CB Lama, the chairman, allegedly acquired land in various locations using savers' funds, and when savers demanded their money back, he tried to sell them the same land at exorbitant prices. Despite repeated calls from the cooperative department, Lama did not address the victims' complaints. The cooperative department recommended declaring Pashupati Cooperative as problematic, but the ministry has not yet made any declaration. The cooperative has put forward an action plan to sell land with a 50% loan facility, a scheme which further raises concerns that savers demanding their deposits will be cheated once again. Lama has set high prices for the land he acquired cheaply and demands an additional 25% cash from savers when purchasing the land. The victims allege that the cooperative introduced middlemen to collect additional money from them during the land purchase process. After being deceived multiple times, many savers now find themselves in financial jeopardy. Pashupati Cooperative must be held accountable for its fraudulent practices, and the affected savers seek justice for the misuse of their hard-earned money. The cooperative department has sought assistance from the Central Investigation Bureau (CIB) to investigate the board of directors, including Chairman CB Lama. Authorities must act swiftly to uncover the truth and provide relief to the victims of this deceitful land plotting scheme.
SERIES-4/10 Billion Embezzlement Scandal: Sumeru Cooperative Owner Flees to Britain:: Kathmandu, Nepal - A shocking revelation has come to light as the owner of Sumeru Cooperative, Bharat Maharjan, is accused of embezzling more than 10 billion rupees saved by common people in the cooperative. Bharat, who started as a normal businessman two decades ago, built an extraordinary business empire, including Sumeru Hospital in Dhapakhel and Sumeru City Hospital in Pulchok, along with a dozen other companies in various sectors. However, it has now been exposed that he misused the cooperative's funds to set up his private ventures, leaving thousands of savers in financial turmoil. The Rise of Sumeru Cooperative and the Unraveling of Deceit Bharat Maharjan initiated Sumeru Savings and Credit Cooperative in 2057 with an office in Pulchowk, Lalitpur. After the 2062/63 movement, cooperatives started thriving as the government recognized them as a vital economic pillar and offered subsidies through cooperatives. Being close to politicians, Bharat took advantage of this favorable climate and allured the general public into depositing their money in the cooperative. As the capital of the cooperative grew, Bharat began managing it arbitrarily, leading to the establishment of several ventures such as Sumeru Community Hospital in Dhapakhel, Sumeru City Hospital in Pulchok, Sumeru Medical College, Asian College of Advanced Studies, Shankarapur Academy, and more. He acquired extensive land within and outside Kathmandu valley, displaying his opulence and influence in various events attended by prominent political figures. However, unknown to the savers, Bharat was channeling their hard-earned money into his private companies, falsely presenting himself as a social worker and philanthropist. He maintained a carefully crafted image to win the trust of savers and continued his fraudulent practices for years. The Astonishing Extent of Embezzlement According to a white paper jointly issued by the Board of Directors of Sumeru Cooperative and the savers, the total funds deposited by 34,778 savers in both Sumeru Cooperative and Sumerukai amount to a staggering 10 billion 347 million 39 thousand 702 rupees. Shockingly, only a small fraction, 1 billion 98 crore 48 lakh 89 thousand 504 rupees, was invested in loans, while the remaining amount was siphoned off into Bharat's private companies and businesses. Investigations revealed that Bharat and his family members hold more than 15.6 billion rupees in land and assets, with his close relatives serving as key figures in the cooperatives' management committees. This extensive embezzlement was meticulously orchestrated over the span of several years, leading to the financial downfall of Sumeru Cooperative. The Great Escape and Fake Divorce As the economic crisis worsened, savers demanded their deposits back, causing a run on Sumeru Cooperative. President Bharat abruptly left for Britain with his family under the pretext of seeking medical treatment, leaving behind a cooperative on the brink of collapse. Upon further investigation, it was discovered that he had orchestrated a fake divorce with his wife Rajmaya two and a half years earlier, dividing the wealth among their children. Efforts to Recover Lost Savings In the aftermath of Bharat's departure, savers organized themselves into a committee and, in collaboration with the current board of directors, issued the Sumeru Cooperative's white paper. The report highlighted the market value of the company and land at 11.49 billion, with loans amounting to 4.10 billion. The depositors' savings and liabilities stood at 10.34 billion, while the bank's loans and other liabilities amounted to 1.24 billion. Efforts to return the savers' money face significant challenges in bringing properties owned by Bharat and his family members into the cooperative's possession. The assets are currently registered in their names or in private companies owned by Bharat, making legal procedures complex. What so ever, The Sumeru Cooperative embezzlement scandal has shaken the faith of thousands of savers who trusted their hard-earned money with the cooperative. The authorities must take immediate action to bring the culprits to justice and ensure that the savers' lost savings are recovered through a transparent and legal process. The incident serves as a stark reminder of the need for stricter financial regulations and vigilant oversight to protect the interests of the general public.

The series of co-operative finance scams in Nepal underscore the urgent need for stringent regulations and robust government oversight to protect depositors' interests. Without a functional government and effective monitoring by the central bank, the poor and hardworking citizens become vulnerable to fraudulent schemes. It is high time for the authorities to take decisive action to hold the culprits accountable, recover lost savings, and restore public trust in Nepal's financial institutions. So far there's such more series of Finance Crimes in Nepal. A Journal cover not enough to write at once.