KMC prepares for action against 900 non-responsive cooperatives; experts recommend deregistration 

KATHMANDU: Experts have recommended the cancellation of around 900 cooperatives that have not been in contact with Kathmandu Metropolitan City (KMC) office, despite having specified KMC as their working area.

"Start by issuing a circular. If there's no response, then publish a public notice to reach out to the directors, members, and savers by providing the address. If there's still no response, then proceed with the deregistration process," said cooperative specialist Kashi Raj Dahal, "This is a process that needs to be initiated to address the issue with cooperatives."

Dahal explained that once the process has started, stakeholders will be contacted. If the manager does not respond, the savers will be reached out to. Dahal stated in the programme on 'Research and Investigation for Cooperative Upliftment' organised by KMC's Cooperative Department on Saturday that this process would help in locating the owners through the contact of savers.

Out of 1,923 cooperatives operating in the KMC area, 968 cooperatives have submitted details in the previous fiscal year. According to the rules, every cooperative must report the activities conducted within a year. However, after the cooperatives ignored the repeated notices from the Cooperative Department to submit the details, KMC is preparing for monitoring and action.

Bimala Koirala, Acting Head of KMC's Social Development Department, stated that the issues observed in cooperatives have predominantly affected savers. Balram Tripathi, Head of KMC's Cooperative Department, said that as per the constitutional provisions, all Division Cooperative Offices in the country have been cancelled since 17 July 2018, and the relevant local level has been regulating and monitoring cooperatives.

In 2017, before the transfer of cooperatives to the local level, KMC had already enacted the Cooperatives Act, 2017. Cooperatives are being operated in accordance with this Act. Among the cooperatives in KMC, there are 1,628 saving and credit cooperatives, 264 multipurpose cooperatives, three labour cooperatives, 15 agricultural cooperatives, 13 consumer cooperatives, three vocational cooperatives, and two educational cooperatives. There is one cooperative each in the communication, tourism, tea, and common sectors.

KMC is preparing to form a problematic cooperative management committee to address the issues observed in this area recently. There are approximately 32,000 cooperatives in Nepal.