CIB uncovers alleged Rs 120 million embezzlement in Dairy Development Corporation

Kathmandu, November 2, 2026 — Nepal Police’s Central Investigation Bureau (CIB) has uncovered an alleged embezzlement of more than Rs 120 million from the state-owned Dairy Development Corporation (DDC), with former General Manager Sanjiv Jha and several current and former employees implicated in the investigation.

The investigation began after a complaint was filed with the CIB on May 21, alleging that payments for milk supplied to DDC were being deposited into employees’ bank accounts instead of being paid to farmers.

Following the complaint, the bureau raided DDC’s central office in Lainchaur and its Kathmandu Dairy Office in Balaju on May 27, seizing documents related to milk purchases and payments. Investigators found that portions of the money paid for milk collected from farmers had allegedly been diverted into employees’ personal accounts.

According to the investigation, employees used 17 agricultural and livestock farms and cooperatives to receive payments. They allegedly arranged for farmers to receive inflated payments and then collected part of the money back. In other cases, employees reportedly claimed that milk had quality problems or had been mixed with supplies from other farmers, using those explanations to demand additional payments.

One case involved Bhairavpur Buffalo Livestock Farm, which supplied 1,000 litres of milk. Employees allegedly told the farm that its milk had quality problems and proposed adding another 1,000 litres from a different supplier, increasing the recorded quantity to 2,000 litres. They then demanded payment for the additional 1,000 litres. The farmers reportedly agreed because they feared losing payment for their own milk.