The CK Raut-led Janamat Party has suspended its central treasurer Surendra Narayan Yadav over allegations of financial irregularities and fraud. The party has also sought a clarification from Yadav within seven days, accusing him of conspiring against the party.

Yadav was suspended ahead of the party’s central committee meeting scheduled to be held in Bardibas, Mahottari, on Sunday.

Janamat Party has accused Yadav of raising millions of rupees from over 60 members of the Non-Resident Madhesis Association, keeping the party in the dark. The funds were allegedly collected in coordination with former president of the association engineer Basanta Kumar Kushwaha and engineer Shambhunath Sah under the pretext of investment shares and levies.

The party’s disciplinary committee member-secretary Anita Kumari Mandal, in a letter to Yadav, has accused him, along with Kushwaha and Sah, of collecting funds and later purchasing a house in Koteshwar, Kathmandu, operate a hotel, and invest in real estate and a school in Janakpur, among others.

Mandal, in the letter, claimed that the party took the action after receiving multiple complaints in connection with the transactions against them.

Yadav has also been accused of spending most of his time abroad, in the US and Qatar, neglecting party duties, and failing to attend key meetings. The party further alleged that he repeatedly manipulated financial records.

The suspended treasurer, Yadav, who was sent a clarification letter, has accused Chairman Raut of plotting to defame him.

“All the allegations against me are false,” Yadav said. “I am a party founder, and I have been investing in different sectors since the Independent Madhesh Alliance days. I have spent my own money.” He said the ‘truth’ about Raut will soon be known to the public.

“He intends to present himself as the only good one while portraying others as dishonest. No one else has contributed money to the party’s formation except me. I have been a donor since 2009,” Yadav said.

Regarding the accusations about buying properties, Yadav clarified that all the properties in question were personal investments. He claimed to have donated over Rs50 million to the party.