Kathmandu, May 6: The government has announced that it will begin returning savings to depositors of troubled cooperatives from mid-May, starting in the first week of Jestha.
The Problematic Cooperative Management Committee, formed on April 22, has completed the collection of necessary data on cooperatives and depositors and is preparing to initiate the refund process, according to the Ministry of Land Management Cooperatives and Poverty Alleviation.
Around Rs. 46 billion is to be returned to approximately 76,000 depositors affected by problematic cooperatives. Most of these are small depositors.
Depositors with savings below Rs. 500,000 are categorized as small depositors, while those above this threshold are considered large depositors. Of the total, only about 18,000 fall into the large depositor category.
Minister Pratibha Rawal said that preparations for the refund process are largely complete and disbursement will begin soon.
“We have completed most of the groundwork. Priority will be given to small depositors,” she said.
The Committee will implement refunds alongside efforts to recover loans, following provisions outlined in the “Procedures for the Establishment and Operation of the Revolving Fund for Refund of Savings to Members of Problematic Cooperatives 2083.”
Under the policy, priority will also be given to vulnerable groups, including single women, senior citizens above 60, Dalit and indigenous communities, and persons with disabilities.
The Committee stated that refunds for those who have already submitted claims will begin in the first week of Jestha. A second window for those who missed the initial deadline will open in the third week of May.
A revolving fund will be used for the refunds. This fund will include government allocations, recovered amounts from cooperatives, and proceeds from asset liquidation.
Funds recovered through the auction of assets belonging to directors, managers, audit committees, and individuals involved in embezzlement will also be deposited into the fund. If necessary, assets transferred to family members may also be frozen and auctioned.
Committee Member-Secretary Rabin Dhakal said strict legal measures will be enforced to recover outstanding loans.
Directors and Defaulters Last in Line
According to the procedures, depositors who have taken loans must first clear their liabilities before receiving refunds.
Similarly, directors, managers, their immediate family members, and individuals involved in misappropriation will not receive refunds until all legitimate depositors are compensated.
If any claim is under judicial consideration, refunds will be withheld until the court reaches a decision.
