Mastermind Behind Miteri Cooperative Fraud Brought Back from Cambodia
Kathmandu, June 2025
Mastermind Behind Miteri Cooperative Fraud Brought Back from Cambodia, In a major breakthrough in the Miteri Savings and Credit Cooperative fraud case, the Nepal Police have successfully extradited Jyoti Bahadur Bhandari, the primary accused, from Cambodia. Bhandari was brought to Kathmandu on Wednesday night by a team deployed through the Interpol branch of Nepal Police, following years of international manhunt and a Red Corner Notice issued in 2008.
According to Superintendent of Police Yubaraj Khadka, spokesperson for the Central Investigation Bureau “CIB”, Bhandari had been absconding for years after allegedly defrauding the cooperative and its officials of more than Rs 140 million.
The CIB has taken Bhandari into custody and launched further investigations into the fraud, which has reportedly affected at least 144 victims, most of whom are already in contact with the authorities.
A Red Corner Notice had been issued against Bhandari by Interpol on November 13, 2008, identifying him as the mastermind behind the scam. His location in Cambodia was confirmed recently, after which Cambodian police arrested him and handed him over to Nepali officials.
Although the Cambodian government has not disclosed the exact nature of the action taken against Bhandari prior to extradition, Nepal Police coordinated with Cambodian counterparts and dispatched a special team led by an SP to bring him back.
Police suspect Bhandari close coordination with Jyoti Gurung, who served as the general manager of the cooperative during the time of the fraud. Gurung, who is also the former wife of Nepali Congress Vice President Dhanraj Gurung, has been on the run and is currently the subject of a Red Corner Notice.
The CIB has questioned Dhanraj Gurung multiple times as part of the ongoing investigation. Officials believe that Gurung fled to Thailand, and her involvement only came to light after Bhandari had already left the country.
“It appears the two maintained communication through WhatsApp, where Bhandari promised to return the money,” said SP Khadka. “However, no money was returned, and instead, further deception occurred.”
In a strange turn of events, Bhandari reportedly sent a message to the cooperative secretary, Krishna Bahadur Rana, claiming that he had sent Rs 331.1 million via a parcel to the Global IME Bank Indrachowk branch. Along with this, he shared a photo of a token as proof.
Although Bhandari only owed around Rs 110 million, he exaggerated the amount and used the token as a tactic to further convince officials. He demanded a commission to release the parcel, thus deceiving the officials into paying additional sums. According to the CIB, Bhandari extracted a further Rs 34.474 million through this scheme.
“There is reason to believe that part of the embezzled amount may have been invested in cryptocurrency,” said SP Khadka. “We are looking into this angle through a detailed forensic financial investigation.”
Investigators have also discovered that Bhandari possesses two separate passports and two citizenship documents, raising serious concerns about identity fraud. He is accused of using forged documents and fake identities to facilitate his escape and carry out fraudulent operations abroad.
The CIB stated that Bhandari is involved in at least three separate cases registered at the District Police Complex, Kathmandu, on different dates.
In a public appeal, the CIB said: “If anyone believes they have been defrauded by Jyoti Bahadur Bhandari, they are encouraged to contact the bureau immediately.”
The investigation is ongoing, and authorities are working to identify additional accomplices, recover stolen assets, and determine the full extent of the fraud.
