Kathmandu. Kathmandu Metropolitan City (KMC) has put forward conditions for the merger of problematic cooperatives.

The cooperatives operating under the jurisdiction of KMC have put forth various conditions regarding the dissolution of cooperatives and cancellation of registration as per Clause 66 of the Cooperative Act-2074.

Chief of the Department of Cooperatives, Dhruba Kumar Kafle, said that if the cooperatives have been inactive for two consecutive years without carrying out any transaction and the decision of the two-thirds majority members of the AGM can initiate the process for the cancellation of the registration of the cooperatives.

For this, KMC will initiate the process legally only if the letter pad of the concerned organization is submitted to the Department regarding the application regarding the dissolution and cancellation of the cooperative, the certificate of business tax and restoration tax from the ward office, the certified copy of the decision of dissolution and cancellation of the cooperative by two-thirds members of the general assembly, the details of the share member, the details of the borrower, the details of the savers, the details of the three generations of the board of directors so far and the details of movable and immovable property except loan investment ।

Lately, 6,000 savers have applied to the KMC Cooperative Department for the repayment of Rs 5.27 billion saved. According to the department, it plans to refund the amount to those who have saved up to five lakh rupees within the next one month. Kafle also informed that coordination is underway to repay the savings by forwarding the loan recovery process in the case of big savers. The Department of Cooperatives has been registering complaints, discussing and reconciling between the directors and savers.

If consensus is not reached, recommendations will be made for necessary action, the department said. Currently, there are 1,912 cooperatives in KMC. Only 50 percent of the cooperatives regularly submit their annual general meetings. The KMC is to initiate legal action against the cooperatives registered but do not hold its general assembly regularly.