Nepal wants Interpol red notice for Miteri cooperative money embezzlement suspects

The Central Bureau of Investigation (CIB) of the Nepal Police has recommended issuing an Interpol Red Notice against two persons in connection with misappropriation of funds at the Lalitpur-based Miteri Saving and Credit Cooperative Society Limited.

Although the cooperative filed complaints against five people, the CIB recommended the Nepal Police Headquarters to issue a red notice against Jyoti Gurung and Jyoti Bahadur Bhandari. Jyoti Gurung is the former wife of Nepali Congress vice-president Dhanraj Gurung and is believed to have fled the country.

But Miteri cooperative president Kumbharaj Gurung says that although he tried to file complaints against six people, including Dhanraj Gurung, the police refused to accept a complaint against him.

Nepal Police spokesperson Dhan Bahadur Bhandari confirmed that the CIB had recommended the police headquarters to issue a red notice against Jyoti Gurung and Bhandari.

“A red notice recommendation has reached police headquarters and we are processing it,” Karki told The Post. “There is a procedure to follow before corresponding with Interpol headquarters for a red notice to be issued against an individual.”

Karki said Interpol headquarters does not accept all red notice requests. Red Notices are issued to fugitives wanted either for prosecution or to serve time for serious common law offenses such as murder, rape and fraud.

“Before asking Interpol to issue a red notice, we must follow due process to strengthen our case,” Karki said.

When the CIB recommended the Nepal Police Headquarters to correspond with Interpol to issue a red notice against Gurung and Bhandari, accused of misappropriating money from the Miteri cooperative, the office also opened an investigation into the alleged fraud .

CIB spokesperson Hobindra Bogati said they were thoroughly investigating the complaint about the Miteri cooperative. But he added that completing the investigation would take time.

“We are investigating the complaint regarding the Miteri cooperative, in which Dhanraj Gurung and his ex-wife are allegedly involved,” Bogati told the Post.

After the cooperative’s chairman, Kumbharaj Gurung, filed a complaint with the Ministry of Cooperatives in August, alleging that Jyoti Gurung, the managing director, had embezzled millions of rupees from the cooperative, Congress vice-president Gurung , was also investigated.

Miteri Cooperative is an organization established by retired servicemen of the British and Indian armies. Congress leader Gurung’s former wife Jyoti joined this cooperative as a clerk on May 25, 2000. Within two months, she was promoted to accountant and then became general manager in 2018.

After becoming the managing director, Jyoti transferred the funds of the cooperative to Jyoti Bahadur Bhandari. Initially, Jyoti withdrew 3 million rupees from the cooperative and gave Bhandari a one-week loan, but Bhandari returned it by adding half a million rupees.

Bhandari then took out a second tranche of loan, this time worth Rs 4 million. This time, Bhandari returned the money the next week by adding Rs 1 million. Jyoti allegedly took advantage of the misuse of cooperative funds to lend at exorbitant rates. In this practice known as “meter byaj”, interest is calculated on a weekly basis.

Later, when Bhandari absconded with the money given by Jyoti Gurung, Congress leader Dhanraj Gurung was accused of suspiciously divorcing his wife.

Miteri Cooperative chairman Khumbharaj Gurung also claims that despite their alleged divorce, Dhanraj Gurung had taken a loan from the cooperative, with Jyoti Gurung as a witness.

“Dhanraj Gurung claims to have divorced Jyoti Gurung to evade his obligations,” Khumbharaj Gurung accused.

“Although they repaid the loan in their name, Gurung and his ex-wife will also have to repay the money they embezzled from the cooperative. They embezzled a total of Rs 140.81 million,” said President Khumbharaj Gurung.

But Dhanraj Gurung rejects these accusations, saying that if he had used his divorced wife’s name while acquiring the new loan of Rs 1.2 million, why was he not questioned about it- field.

“I had actually obtained the loan from the Miteri cooperative, but the cooperative employees themselves filled out the loan application form,” Dhanraj Gurung told the Post. “To be clearer, the handwriting can be checked.” He said it was a mistake by staff not to notice that he had already been divorced.

The Post asked Dhanraj: “If that is the case, why was the name of Jyoti Gurung, your wife, included in the election nomination form when you contested the 2022 federal elections from Syangja-2? Gurung responded that he was not directly involved in filling out the nomination form and that the mistake must have been made by his supporters.

Dhanraj, meanwhile, accused Kumbharaj Gurung of inefficiency and claimed that the misappropriation of funds from Miteri cooperatives was due to Khumbharaj’s mismanagement. “He is trying to target me to hide his incompetence,” Dhanraj alleged.

Dhanraj Gurung denied his involvement in the scam, arguing that his ex-wife, with whom he no longer has a relationship, had embezzled the money and therefore he could not be held responsible.

Despite Gurung’s claim that he separated from his wife in 2019, Miteri cooperative chairman Kumbharaj said he had filed a complaint against the Gurung duo and informed law enforcement that the lawmaker had continued to repay debts in his wife’s name until last year.

Copies of the vouchers that Dhanraj Gurung allegedly used to deposit money into the cooperative’s account have surfaced in various media outlets.

After being accused of embezzlement of cooperative funds, Dhanraj Gurung, speaking before Parliament on September 10, called for a full investigation to clear his name.

A special parliamentary committee tasked with investigating cooperatives in crisis submitted its report last month. The committee also recommended investigating Gurung and his ex-wife for misuse of cooperative funds.