Kathmandu Metropolitan City Cracks Down on Cooperatives

Kathmandu Metropolitan City has launched an investigation into hundreds of cooperatives operating within its jurisdiction, citing irregularities and non-compliance with regulations.

According to the metropolitan city, only 667 out of 1,912 registered cooperatives have renewed their licenses for the fiscal year 2082/83, indicating that a significant number of cooperatives are either inactive or operating outside the law.

Furthermore, 10,234 depositors have filed complaints seeking refunds of over Rs 8.19 billion. The metropolitan city has also initiated action against 915 cooperatives and recommended further action against 187 others.

Last year, the metropolitan city facilitated the repayment of loans for 1,712 borrowers from 103 cooperatives and mediated disputes between depositors and management in 58 cooperatives. Additionally, 40 cooperatives were subjected to intensive monitoring, and 163 institutions underwent a thorough inspection.