Directive of Kathmandu Metropolis to Submit Details to Cooperatives within 30 Days; Failure To Result in Dismissal

The Kathmandu Metropolitan City (KMC) has instructed cooperative organizations to provide details within 30 days. The Metropolitan City issued a notice on Wednesday stating that the cooperative organizations failed to submit the specified details, such as general meeting information and audit reports, within the given timeframe.

According to the Kathmandu Metropolitan City Cooperative Act, it is mandatory to convene the general assembly of the cooperative within 6 months of the end of each financial year, and the auditor should conduct an annual audit within 3 months of the financial year-end. Failure to comply with these requirements has been cautioned against.

In recent times, cooperative organizations operating in the Kathmandu Metropolitan City have experienced a collapse. Cooperative operators have been arrested on charges of embezzling billions of rupees from depositors. Following significant investments in real estate and the stock market without due diligence, the Metropolis demanded detailed information from cooperative organizations operating within its jurisdiction.

The lack of liquidity has become a well-known issue. This can be observed from the numerous written and verbal complaints submitted by shareholders and directors to the Cooperative Department of the Metropolitan Municipality. During such a sensitive period, I urge cooperative associations/organizations to carry out their operations responsibly, honestly, and with discipline, transparency, and adherence to the law. It is crucial to establish cooperative governance by responsibly operating and managing their members in a transparent, honest, and lawful manner," stated Metropolitan Chief Balendra Shah.

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