Fiscal Nepal
First Business News Portal in English from Nepal
cooperatives passport seize
KATHMANDU: The government has suspended the passports of 87 directors of troubled cooperatives as part of intensified efforts to prevent them from fleeing the country amid growing financial irregularities in the sector.
According to the Department of Immigration Nepal, the passport restrictions were implemented based on recommendations from the police, courts, and cooperative-related authorities. Spokesperson Tikaram Dhakal confirmed that recommendations for further suspensions are still being received.
The Department of Passports Nepal has also accelerated the process, noting that most of the recent requests for passport suspension are linked to individuals involved in the cooperative sector.
The Problematic Cooperative Management Committee has been actively recommending such measures, particularly targeting directors of large cooperatives facing financial distress. Officials said the move is based on concerns that some operators may attempt to leave the country amid mounting pressure from depositors and authorities.
“Following requests from depositors and coordination with police, we are recommending passport suspension to ensure those responsible remain within legal reach,” a senior committee source said.
The government has prioritized the return of savings to small depositors, while maintaining regular coordination with stakeholders across the cooperative sector. Prime Minister Balendra Shah has directed Minister for Land Management, Cooperatives and Poverty Alleviation Pratibha Rawal to expedite resolution efforts.
The committee has also increased surveillance in coordination with police, particularly targeting absconding cooperative operators. Some directors are currently in custody, while others remain at large.
At present, 23 cooperatives have been officially declared problematic, including entities such as Kuber Savings and Credit Cooperative, Standard Multipurpose Cooperative, Oriental Cooperative, and Shiva Shikhar Multipurpose Cooperative, among others.
Data from the committee shows that 62,760 depositors have claimed a total of approximately Rs 39.93 billion in savings tied up in these troubled cooperatives. Among them:
36,522 depositors have savings below Rs 100,00021,619 depositors have savings up to Rs 500,00018,303 depositors have savings exceeding Rs 500,000
The government has already begun returning deposits for those with savings below Rs 100,000, with a dedicated procedure now in place.
Authorities say passport suspension and enhanced monitoring are key steps to ensure accountability and facilitate the recovery of depositors’ funds as the cooperative crisis continues to unfold.
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