The Central Investigation Bureau (CIB) of Nepal Police has arrested Subash Khatri for his alleged involvement in a multi-million-rupee fraud case connected to Miteri Savings and Credit Cooperative in Lalitpur.
Khatri’s arrest on June 29 follows leads from Jyoti Bahadur Bhandari, a primary accused recently extradited from Cambodia. Authorities are also pursuing Jyoti Gurung, former wife of Nepali Congress leader Dhanraj Gurung, for her suspected role in misappropriating more than Rs140.81 million from the cooperative.
Bhandari reportedly fled Nepal after committing the cooperative fraud, traveling through Thailand, Malaysia, and Vietnam before being captured in Cambodia with Interpol’s help. While abroad, he allegedly used phishing tactics to deceive Miteri Cooperative officials online.
According to CIB spokesman Yubaraj Khadka, Bhandari falsely claimed he needed extra funds to pay taxes abroad to return the embezzled money to Nepal, leading to a further Rs34 million fraud. Khatri, although not directly linked to Bhandari’s overseas actions, assisted in collecting these funds in Nepal.
Jyoti Gurung, currently at large, is also accused of facilitating the fraud by connecting Bhandari with cooperative officials and allegedly misappropriating cooperative funds. She joined Miteri Cooperative as a clerk in 2000, eventually becoming general manager in 2018. Under her management, cooperative funds were lent to Bhandari at high interest rates through a loan sharking practice known locally as ‘meter byaj.’
Following Bhandari’s escape with the funds, Gurung and her former husband, Dhanraj Gurung, have faced allegations related to the misused Rs140.81 million. Police issued a ‘Red Corner’ notice for both Jyoti Gurung and Bhandari last October.
Despite intensive efforts, authorities have yet to locate Jyoti Gurung. A parliamentary committee has recommended further investigation into her and Dhanraj Gurung’s involvement. The CIB interrogated Dhanraj Gurung last November but found no conclusive link.
The case remains under active investigation as the CIB continues its crackdown on cooperative fraud in Nepal.
