The number of cooperatives flagged as problematic by the government has reached eighteen, marking a significant concern over financial irregularities and failure to reimburse public savings. In the latest development, three additional cooperatives were deemed problematic in the past few weeks, bringing the total 18 cooperatives under the jurisdiction of the Cooperatives Management Committee.

The Ministry of Land Management and Cooperatives designated Hamro Naya Krishi Cooperative, Krishi Bikas Multipurpose Cooperative, and Kantipur Savings and Credit Cooperative as problematic, entrusting the committee with the task of distributing their assets and liabilities to depositors.

Amidst the scrutiny, Himalayan Bikram Malla, the president of Kantipur Savings and Credit Cooperative, has been apprehended, with investigations underway regarding alleged irregularities. Earlier in the fiscal year, three other cooperatives were also flagged as problematic and handed over to the committee.

According to Section 104 of the Cooperatives Act, 2074, the ministry holds the authority to label a cooperative as problematic based on recommendations from the cooperative registrar, particularly when it fails to return depositors’ savings, faces severe financial crises, or exhibits financial discrepancies.

Section 105 of the same Act outlines the establishment of a management committee to oversee the assets and liabilities of troubled organizations and fulfill their financial obligations.