KATHMANDU: More than 1,100 cooperatives operating within Kathmandu Metropolitan City have fallen out of contact with authorities, according to the metropolitan government’s Cooperative Department.
Department officials said that out of the registered cooperatives, only 726 institutions have remained in regular contact and have been submitting their annual reports as required.
Chief of the Cooperative Department Dhruva Kumar Kafle said legal action is being initiated against cooperatives that have failed to maintain contact with the authorities.
He added that Ward Women’s Networks have been assigned responsibilities to assist in monitoring and regulating cooperatives at the local level.
“The networks have been entrusted with supporting cooperative principles, promoting business development, ensuring good governance, and facilitating coordination and cooperation. Their responsibilities have been expanded to help resolve cooperative-related disputes through collective interest, dialogue and mediation,” Kafle said.
Under the new mechanism, coordinators and members of the Ward Women’s Networks, representatives of concerned cooperatives, borrowers and depositors will participate in mediation and discussion processes.
The metropolitan office will accept individual or joint applications from depositors seeking the return of their savings from cooperatives that fall under its jurisdiction and the respective ward offices.
Authorities said cooperatives and borrowers will be contacted through online platforms or official correspondence. For mediation purposes, applicants will be required to provide details including the cooperative’s name and address, the amount being claimed, contact information and relevant loan or savings documents.
Officials believe the process will facilitate discussions, support dispute resolution and help recover loans from borrowers who have defaulted on repayments.
According to the department, if borrowers continue to ignore notices from ward offices and fail to settle outstanding loans or establish contact, ward representatives may recommend restrictions on their access to certain public services.
The Cooperative Department is also responsible for monitoring the financial status of cooperatives, addressing issues related to savings refunds and loan recovery, safeguarding members’ interests, and promoting transparency, accountability and good governance within the cooperative sector.
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