Final 15-Day Notice to Problematic Cooperatives’ Borrowers to Repay Loans, Assets to Be Auctioned if Defaulted
The Ministry of Land Management, Cooperatives and Poverty Alleviation has issued a final notice for borrowers of problematic cooperatives to repay their loans within 15 days. The Problematic Cooperative Management Committee has warned that the properties of borrowers and guarantors will be frozen and auctioned as collateral if payments are not made. The government has fully empowered the Problematic Cooperative Management Committee and appointed a new chairperson and members. Kathmandu, 8 Baisakh.
The Ministry of Land Management, Cooperatives and Poverty Alleviation has issued a final 15-day notice to borrowers of problematic cooperatives to clear their loans. After being empowered, the Problematic Cooperative Management Committee issued the notice on Tuesday, warning borrowers, guarantors, managers, employees, and administrators to repay loans within the period. If loans remain unpaid, the properties of borrowers and guarantors will be frozen and pledged collateral auctioned.
“According to Section 104 of the Cooperative Act 2074 under the Government of Nepal (Ministry of Land Management, Cooperatives and Poverty Alleviation), cooperatives declared problematic and placed under this committee for asset management and liability payments, including their directors, borrowing members, managers, employees, and guarantors, have been repeatedly informed via the office website, national newspapers, SMS, and phone calls. Despite this, those who have failed to repay loans are hereby notified to contact the office in Budhanagar, Kathmandu within 15 days to clear their outstanding principal, interest, and fines,” the notice states.
Additionally, the notice specifies that the names of borrowers, their families, and guarantors who do not repay within 15 days will be publicized, and their properties and accounts will be frozen. Furthermore, public service facilities will be suspended and collateral pledged during loan acquisition will be auctioned. The notice adds, “If the loan is not repaid within the stipulated time, details of the borrowers will be made public, and the assets and accounts of the borrowers, their families, and guarantors will be frozen and reported to relevant authorities; likewise, collateral taken under the Cooperative Act 2074 and Cooperative Regulations 2075 will be liquidated to recover the dues.”
Today, the government fully empowered the Problematic Cooperative Management Committee. The Cabinet meeting appointed Dilliraj Acharya from Pyuthan as chairperson, and Navaraj Singhda from Dhading and Roshan Bahadur Shakya from Lalitpur as members. The ministry is advancing a phased process to return cooperative savers’ funds. Alongside loan recovery, preparations are underway to accelerate the refund process for savings.
