Nepal demands Interpol red notice for suspected misuse of Mytheri Cooperative funds

Nepal Police’s Central Bureau of Investigation (CBI) has recommended issuing Interpol Red Notice against two persons in connection with theft of funds from Lalitpur-based Myteri Savings and Credit Cooperative Society in Lalitpur.

Although the cooperative lodged a complaint 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 ex-wife of Nepali Congress Vice President Dhanraj Gurung, who has reportedly left the country.

But cooperative chairman Myteri Kumbharaj Gurung claims that although he tried to register a complaint against six people, including Dhanraj Gurung, the police refused to accept the complaint against him.

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

“The red notice recommendation has reached the police department and we are processing it,” Karki told the Post. “Before we contact Interpol headquarters about issuing a Red Notice against a specific person, a certain procedure must be followed.”

Karki said Interpol headquarters does not accept every request for a Red Notice. Red Notices are issued to fugitives wanted either for prosecution or to serve a sentence for serious common law crimes such as murder, rape and fraud.

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

When the CIB advised the Nepal Police Headquarters to contact Interpol and issue a Red Notice against Gurung and Bhandari, accused of embezzling Mytheri Cooperative money, the bureau also launched an investigation into the alleged fraud.

CIB spokesperson Hobindra Bogati said they are carefully looking into the complaint against Mytheri Cooperative. But he said completing the investigation will take time.

“We are investigating a complaint against Mytheri Cooperative in which Dhanraj Gurung and his ex-wife are allegedly involved,” Bogati told the Post.

After cooperative chairman Kumbharaj Gurung filed a complaint with the Department of Cooperatives in August, alleging that Jyoti Gurung, the CEO, had embezzled millions of rupees from the cooperative, Congress vice-president Gurung also came under scrutiny.

Mytheri Co-operative is an organization founded by retired members of the British and Indian Armies. Congress leader Gurung’s ex-wife Jyoti joined this cooperative as a clerk on May 25, 2000. Two months later, she was promoted to accountant, and in 2018 she became general manager.

After becoming the general manager, Jyoti transferred the funds of the cooperative to Jyoti Bahadur Bhandari. Initially, Jyoti took 3 million rupees from the cooperative and gave Bhandari a loan for a week, but Bhandari returned it by adding half a million rupees.

Bhandari then took out a second tranche of the loan, this time for Rs 4 million. This time, Bhandari returned the money the following week, adding Rs 1 million. Jyoti allegedly profited from the misuse of cooperative funds to provide loans at exorbitant rates. In this practice, known as meter biaj, interest is calculated weekly.

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

Myteri Cooperative Chairman Kumbharaj Gurung also claims that despite their alleged divorce, Dhanraj Gurung took a loan from the cooperative with Jyoti Gurung as a witness.

“Dhanraj Gurung claims that he divorced Jyoti Gurung to evade his obligations,” accused Humbharaj Gurung.

“Despite repaying the loan in their name, Gurung and his ex-wife will also have to return the money they misused from the cooperative. They misused a total of Rs 140.81 million,” said Chairman Humbharaj Gurung.

But Dhanraj Gurung denies such allegations, saying that if he used his divorced wife’s name to take out a new loan of Rs 1.2 million, why was he not immediately questioned.

“I did receive a loan from the Mytheri cooperative, but the cooperative employees themselves filled out the loan application form,” Dhanraj Gurung told the Post. “To make it more clear, the handwriting can be checked.” He said it was the staff’s fault for not noticing that he was already divorced.

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

Meanwhile, Dhanraj accused Kumbharaj Gurung of inefficiency and alleged that misappropriation of Miteri Cooperatives funds was due to Kumbharaj’s mismanagement. “He is trying to target me to cover up his incompetence,” Dhanraj said.

Dhanraj Gurung denies any involvement in the scam, claiming that his ex-wife, with whom he is no longer in a relationship, embezzled the money so he cannot be held accountable.

Despite Gurung’s claim that he separated from his wife in 2019, cooperative chairman Myteri Kumbharaj said he had registered a complaint against the Gurung duo and told law enforcement officials that the MP continued to pay debts in his wife’s name until last year.

Copies of the vouchers that Dhanraj Gurung reportedly used to deposit money into the cooperative account have appeared in various media.

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

The Parliamentary Select Committee of Inquiry, set up to investigate distressed co-ops, submitted its report last month. The committee also recommended that Gurung and his ex-wife be investigated for misuse of cooperative funds.