Victims of the Butwal-based Supreme Saving and Credit Cooperative staged demonstrations outside the Rupandehi District Court on Tuesday, demanding the return of their savings and legal action against those involved in embezzling funds.

The protest coincided with the recording of a statement of former deputy inspector general (DIG) and ex-director of Gorkha Media Network Chhabilal Joshi, one of the accused of misappropriating the cooperative’s money, at the District Attorney’s Office.

According to Vijay Nepal, coordinator of the Supreme Cooperative Victims’ Struggle Committee, the depositors had initially planned to demonstrate outside the District Attorney’s Office but moved the protest about 50 metres away to the court after police intervention.

The protesters, holding placards and black banners, accused Sagar KC, the manager of the cooperative’s Butwal branch, and chairman Gitendra Babu (GB) Rai of fleeing, with political protection. Police prevented the demonstrators from approaching the government office. Netra Budha, inspector at the Bhairahawa Ward Police Office, urged them to refrain from protesting, citing an ongoing investigation.

The demonstrators called for the return of their savings, action against cooperatives fraud, and the arrest of KC and Rai. They also alleged that political connections shielded Joshi, Rastriya Swatantra Party (RSP) Chairman Rabi Lamichhane, and Rai.

Joshi, who had been in custody in Pokhara for investigation, was brought to Butwal on Monday for testimony related to the embezzlement case. The authorities have a plan to return Joshi to Pokhara on Thursday after recording his statement on Tuesday and Wednesday.

Joshi was arrested on September 22 from Kathmandu—and taken to Pokhara—on the charge of misappropriating funds of Suryadarshan Saving and Credit Cooperative Limited in Pokhara. The trio and others were also charged with embezzling deposits of Supreme Saving and Credit Cooperative in Butwal.

An investigation revealed that Rs142.9 million from Supreme’ funds was transferred to the Gorkha Media Network's account. Rs20 million was transferred to the Gorkha Media Network in the name of Lamichhane and Rs25 million was issued in Joshi’s name.

Police earlier filed a case against 28 people including Rai, Joshi and Om Prakash Gurung. The Rupandehi District Court sent Gurung, the chairman of the Butwal-based Supreme Saving and Credit Co-operative, to jail for judicial custody on the charges of defrauding cooperatives savings.

Gurung, who has been accused of embezzling Rs1.078 billion of savings deposited by over 10,000 members at the Rai-led cooperative, was jailed by judge Shriprakash Upreti. However, the court released six others, including Dipesh Pun, the son of former Vice President Nanda Bahadur Pun, who were also accused of embezzling cooperatives cash.

RSP leaders, cadres continue demonstrations in Pokhara

The RSP leaders, activists and supporters staged demonstrations in the Lake City on Tuesday as well, demanding the release of its chairman Lamichhane.

Terming Lamichhane’s arrest a political vendetta, the protesters claimed that the government was protecting the leaders of the ruling parties who are “actually involved” in the cooperatives scam.

RSP supporters marched around the city before converging into a corner meeting at Prithvi Chowk. RSP leaders Swarnim Wagle, Biraj Bhakta Shrestha, Toshima Karki, Sobita Gautam and Ramesh Prasain, among others, addressed the corner meeting.

Earlier, RSP leaders visited various places of Pokhara in a door to door campaign, urging the residents to take to the streets against the government.

The Kaski District Court on Sunday remanded the RSP chair and former home minister Lamichhane in custody for six days for further investigation on charges of cooperatives funds embezzlement and organised crime. The custody remand will end on Wednesday.

Lamichhane was arrested in Kathmandu on Friday and was subsequently brought to Pokhara, where he was presented before the court on Sunday. Lamichhane, along with several other individuals, is accused of misappropriating funds from the Pokhara-based Suryadarshan Savings and Credit Cooperative. The arrest followed a parliamentary probe which linked him and others to the embezzlement of millions of rupees from the cooperative.

Meanwhile, Lamichhane was presented at the District Attorney’s Office on Tuesday to record his statement. He had testified before government attorneys on Monday as well.