Around 14 billion rupees of the general public’s money has been lost through cooperatives and companies opened by the Baraha Group of Companies, which started from Dharan.
Two cooperatives and other companies operated by Shiva Lamichhane and his family have caused this loss of around 14 billion rupees.
According to Pradeep Bastola, a victim of the Baraha Savings and Loan Cooperative, over 680 million rupees of the public’s money have been misused in just the Baraha Savings and Loan Cooperative, which is run by Lamichhane’s family. Lamichhane also chairs the Abhimat Savings and Loan Cooperative in Kathmandu, which is facing a similar crisis.
There are claims that, under the Baraha Group of Companies, the Lamichhane family operates 28 companies across the country, where the savings collected from the public were also invested.
Hari Khatri, head of the Provincial Cooperative Registrar and Training Office, mentioned that 680 million rupees in the Baraha Savings and Loan Cooperative have been misappropriated. However, he also stated that 14 billion rupees were misused through the Baraha Jewelry and other companies under the Baraha Group. The detailed breakdown of this amount has not been made public.
Savings Collection and Investment
Indra Lamichhane (Bishwakarma), who moved from Bhojpur to Dharan, started Baraha Jewelry Enterprises in 1995, primarily targeting the Lahure community of Dharan. The company collected savings by enticing people with attractive interest rates.
In a short time, Baraha Jewelry became famous not just in Dharan but across the country. Branches were even opened in Hong Kong and Dubai. After establishing itself as a brand, Baraha Jewelry added the tagline “Symbol of Trust” to its name.
After the ban on savings and loan transactions in jewelry stores, the Baraha Savings and Loan Cooperative was established in 2009. By the end of the last fiscal year, this cooperative had collected over 680 million rupees in savings from the public.
A total of 13,578 general depositors in Dharan have saved amounts ranging from 5,000 to 10 million rupees. As of the last fiscal year, the cooperative had 5,213 shareholding members and a share capital of 101.86 million rupees.
The cooperative had collected 68.83 million rupees in savings and made loan investments totaling 71.58 million 64 thousand 537 rupees. Of these loan investments, more than 41.03 million rupees were improperly invested in its own companies.
The investments under the Barah Group include:
- 27.28 million rupees in Baraha Jewelry Pvt. Ltd.,
- 3.04 million rupees in Baraha Family Kitchen,
- 8.79 million rupees in Baraha Department Store,
- 4.86 million rupees in Baraha Bhedetar Multipurpose Pvt. Ltd.,
- 4.68 million rupees in Baraha Agricultural Products and Animal Husbandry Pvt. Ltd.,
- An additional 2.82 million rupees in Baraha Bhedetar Multipurpose Pvt. Ltd.
These investments were presented by the cooperative’s president, Man Bahadur Vishwakarma, during his testimony to the Parliamentary Investigation Committee.
The Sunsari District Police Office is investigating the fraud involving the Baraha Savings and Loan Cooperative. According to police spokesperson Ram Prasad Timsina, 333 victims have filed complaints for the return of their savings, and this number is expected to grow as the public call for complaints is still open.
The police are searching for the cooperative’s president, Man Bahadur Bishwakarma, and have arrested his wife, Sangita B.K, after not finding him at home. Other members of the management committee, including Bishnu Tamrakar, Arpana Shrestha, Asmita Bhandari, Sudin Lwagun, Sher Bahadur Mahat Kshetri, Sarita Kalikote, and Ravi Portel, have also been arrested, and the cooperative’s documents have been seized for investigation.
Decline After the Pandemic
Baraha Jewelry, which was started targeting the Lahure community in Dharan, quickly gained popularity and expanded its business. By 2013, the company had already expanded its commercial empire. At that point, Baraha added “Symbol of Trust” to its name. However, in 2013, Indra Lamichhane died in Hong Kong.
After his death, his son, Shiva Lamichhane (Bishwakarma), took over the company. Under his leadership, the family opened several companies, including Baraha Jewelry Pvt. Ltd., Baraha Family Kitchen, Baraha Department Store, Baraha Bhedetar Multipurpose Pvt. Ltd., Baraha Agricultural Products and Animal Husbandry Pvt. Ltd., and Kripa Digital Production Pvt. Ltd. Additionally, they expanded outside Dharan, with companies like Indra Baraha Travels and Tours Pvt. Ltd. in Kathmandu, Narayan Baraha Jewelry Industries Pvt. Ltd. in Bharatpur, Chitwan, and others.
After the COVID-19 pandemic, the companies started facing financial difficulties. A large portion of the savings collected from the public was invested in land plotting and real estate, which led to an inability to return the savings to the public.
Since 2021, Baraha Savings and Loan Cooperative has been in financial crisis. The management continued promising the return of savings, and many depositors were hopeful. During this period, it was reported that around 6 million rupees had been returned to the public, according to the Cooperative Registrar’s Office.
On September 8, 2023, Shiva Lamichhane, the president of the Baraha Group of Companies, made a public appeal claiming that the company was facing a difficult situation and promised to take responsibility for the safety of investments. He mentioned that a package would be created to restore financial balance and detailed plans would be shared in October. However, no such plans were released, leading disgruntled depositors to file complaints with the police.