Kathmandu. The government has tightened the crackdown on the problematic cooperatives. In order to tighten the discipline of the cooperative sector, the government has made a significant amendment to Section 104 of the main act to make the cooperatives’ directors, borrowers and employees stricter.

According to the amendment made by the government, there will be strict monitoring and control over the people involved before declaring any cooperative institution as problematic.

According to the newly added sub-section (1B), the registrar or authority may freeze the financial activities including movable and immovable property, bank account, shares and other involved persons of the cooperative, prior to the recommendation of the cooperative. In addition, a provision has been made to ban their foreign travel if necessary.

Adding sub-section (4), the bill clarifies that the cooperatives under the province and local levels shall be declared problematic and the right to take action shall be as per the laws of the concerned province and local level.