Depositors of ‘troubled’ cooperatives to get money back but those having cash in other institutes unsure of refund
Summary
The government has started returning savings to depositors of officially declared troubled cooperatives, but thousands of victims in other crisis-hit cooperatives remain outside the refund programme. Experts and victim groups say more than 500 cooperatives have stopped returning deposits without being formally declared troubled.
Key Points
- The government has begun refunding deposits in cooperatives officially declared troubled, but many other failed cooperatives are not covered.
- Victim groups say more than 500 cooperatives across Nepal have stopped returning savings without being formally listed as troubled.
- Officials and experts say the crisis reflects deep regulatory failure, weak oversight and widespread misuse of public savings.
- Police records show hundreds of arrests, thousands of victims and major unresolved criminal cases linked to cooperative embezzlement.
