Kathmandu Metropolitan City writes to CIB demanding action against seven cooperatives

After monitoring 40 cooperative societies operating in Kathmandu, the Kathmandu Metropolitan City has asked the Central Investigation Bureau (CIB) of the Nepal Police to take action against seven cooperative societies allegedly involved in the irregularities.

The inspection, which began on March 29 and ended on June 21, focused on cooperative societies in the metropolitan region. According to the report prepared after the monitoring, irregularities were found in six savings and credit cooperative societies and one multipurpose cooperative society, said Dhruva Kumar Kafle, head of the metropolitan cooperative department.

According to Kafle, the cooperative societies being studied include Sumeru, Square, Rural Development, Satkar, Mahabauddha and Namo Harati, which are active in the savings and credit sector. A multipurpose cooperative society is also on the list.

A letter has been sent to the CIB as further investigation is needed regarding the collection of savings, use of collected funds, loan disbursement and investments, he said.

Sushil Subedi, head of the Urban Cooperatives Regulation Department and secretary of the monitoring committee, said no action had been taken against 32 cooperatives on the monitoring list as the committee had found them to be in good condition.

The Kathmandu Metropolitan Cooperative Act 2074 provides for penalties ranging from a fine of up to Rs 500,000 to imprisonment of up to 10 years, depending on the gravity of the offence.

In line with the government’s decision of 16 July 2017 to transfer the responsibility of the former Division Cooperative Office to the local authorities, the metropolis now serves 1,922 cooperatives, including newly registered