Troubled Cooperatives Told to Hand Over Vehicles as Savers Get Refunds
Nepal's cooperative management committee has directed 25 crisis-hit institutions to surrender their vehicles under threat of asset freezes, while reimbursing 223 small savers from four troubled lenders.
The Problematic Cooperative Management Committee has instructed 25 troubled cooperatives to immediately surrender all vehicles registered under their names, warning that non-compliance will trigger asset freezes and passport seizures. The regulatory push coincides with the disbursement of long-delayed deposit reimbursements to 223 small account holders across four crisis-hit institutions using recovered loan capital.
According to a public notice reported by Onlinekhabar, the state management committee invoked Section 106 of the Cooperatives Act, 2074, to mandate the handover. The directive applies to all vehicles, including freight and commercial transport machinery, whether owned directly by the cooperatives or through commercial subsidiaries in which they held investments. The regulatory body ordered that the vehicles be surrendered to its central office in their current physical condition, warning that failure to comply would result in freezes on real estate, bank lockers, bank accounts, and passports belonging to cooperative operators and associated individuals.
Clickmandu reported that the directive covers 25 declared crisis-ridden cooperatives, including Shiva Shikhar Multipurpose, Kantipur Saving and Credit, Krishi Bikas Multipurpose, Gorkha Saving and Credit, Laligurans Multipurpose, Oriental Cooperative, Tulsi Multipurpose, Standard Saving and Credit, Pacific Saving and Deposit, Societal Saving and Credit, Prabhu Saving and Credit, Luniva Multipurpose, Consumer Saving and Credit, Kohinoor Hill, Vegas Saving and Credit, Pashupati Saving and Credit, Hamro Naya Krishi, Gautamshree, Nepal Sahakari, and Ideal Yamuna Hamro Multipurpose.
Alongside the enforcement on institutional assets, the committee has continued releasing money back to victimized savers. Annapurna Post reported that 223 small depositors from four troubled lenders—Shiva Shikhar, Kantipur, Krishi Bikas, and Gorkha—received their deposits back from debt recoupment operations. Authorities clarified that the payouts rely strictly on funds recovered from borrowers rather than public subsidies, prioritizing small-scale savers in the opening phase before sorting and reimbursing larger depositors in subsequent batches.
Reporting on the same distribution, Gorkhapatra characterized the group as an additional 223 depositors who received funds from the four institutions. The state-run daily noted that the committee operates under Sections 105 and 106 of the Cooperatives Act to administer troubled cooperative assets and settle financial liabilities. Committee officials maintained that resolving depositor dues remains fundamentally tied to accelerating legal loan recoveries and liquidating movable and immovable property.