Kathmandu. Kathmandu: The Kathmandu Metropolitan City (KMC) has urged the cooperatives not to carry out financial transactions with non-Nepali citizens. The KMC has urged all cooperatives to immediately stop the practice of cooperatives citing complaints that some cooperatives were involved in financial transactions by making foreign nationals members of the cooperatives.

According to KMC Cooperative Department Chief Dhruba Kumar Kafle, it is against the law to make non-Nepali citizens members of the cooperatives.

KMC is preparing to take action as per the prevailing laws if KMC’s request is addressed. Clause 30 of the Cooperative Act, 2074 and Clause 20 of the Kathmandu Metropolitan City Cooperative Act, 2074 have a clear provision that only Nepali citizens can be a member of the cooperatives.

Similarly, Clause 50 of the Cooperative Act-2074 BS and Clause 39 of the Cooperative Act-2074 of the Kathmandu Metropolitan City (KMC) have a clear provision that cooperatives should be focused on their members and conduct savings and loan transactions.

Kafle also said that the cooperatives that have not submitted their general assembly report for a long time will not be dissolved. According to the department, the KMC has initiated the process accordingly saying that the process of scrapping the cooperatives that have not been in the process will be misappropriated as the money of the savers would be embezzled if they were taken to the liquidation.

Any co-operative that comes to the process of liquidation should first confirm the savers who have saved money in the cooperative, as well as the financial transactions. KMC had issued a notice two months ago warning of action against cooperatives failing to submit its report on time. There are 1,900 cooperatives in KMC at present. Among them, the highest number of savings and loans are cooperatives, according to KMC.