15-Day Notice Issued for Loan Repayment by Troubled Cooperatives; Properties to Be Auctioned if Defaults Persist
The Ministry of Land Management, Cooperatives, and Poverty Alleviation has issued a notice requiring repayment of loans from troubled cooperatives within 15 days. The notice states that if the loans are not fully repaid, the assets of borrowers and guarantors will be frozen and the collateral properties auctioned. The government has officially mandated the management committee for troubled cooperatives and has initiated processes to reimburse members’ savings. (April 21, Kathmandu)
The Ministry released the notice following the official formation of the Troubled Cooperative Management Committee. On Tuesday, the committee issued a 15-day ultimatum to directors, borrowing members, managers, employees, and guarantors associated with these cooperatives. The notice emphasized that failure to repay will result in freezing and auctioning of their properties and collateral.
The notification reads, “As per Section 104 of the Cooperative Act, 2017, the listed cooperatives have been declared troubled by the Government of Nepal (Ministry of Land Management, Cooperatives, and Poverty Alleviation) and brought under the management and liability settlement committee. Despite repeated notifications via the office website, national daily newspapers, SMS, and phone calls, the borrowers have not repaid principal, interest, and damages owed. Therefore, this notice calls upon these individuals to contact the committee office in Budhanagar, Kathmandu within 15 days from the publication date to reconcile accounts and settle outstanding dues.”
Moreover, if loans remain unsettled within the 15-day period, details including the names of borrowers, their families, and guarantors will be published publicly. Their assets and bank accounts will be frozen, public services suspended, and collateral pledged during loan acquisition auctioned. The notice further states, “If repayment is still not completed within the stipulated period, details of borrowers and guarantors, including their family members, will be made public; their assets, accounts, and public service facilities will be blocked by coordinating with relevant authorities. Collateral pledged at the time of borrowing will be auctioned or disposed of as per the Cooperative Act, 2017 and Cooperative Regulations, 2018, to recover the full outstanding dues of the cooperatives.”
Today, the government officially empowered the Troubled Cooperative Management Committee. The cabinet meeting on Tuesday appointed Dilliraj Acharya from Pyuthan as chairman, and Nawraj Simkhada from Dhading and Roshan Bahadur Shakya from Lalitpur as members. The ministry is advancing the phased process to reimburse savings to cooperative members. With the loan recovery process underway, the ministry is prepared to accelerate savings reimbursement.
