The permits of Shringeswor Adarsha Cooperative of Digam, Satyawati Cooperative of Foksing and Madi Mukunda Cooperative of Khasyeuli, Palpa and Khadgam Bashi Cooperative and Janakalyan Cooperative of Gulmi have been cancelled. The DCO penalized 19 cooperatives in Palpa and 32 in Gulmi. “Those who have not been operating as per the guidelines of the Cooperative Act have been penalized,” said Rukmangat Aryal, head of the division. “We have taken action against those who have failed to submit annual progress reports and income and expenditure reports among other paperwork.”

The cooperatives have been fined Rs 500 to Rs 1,500 each earning revenues amounting Rs 33,500 for the government. “Since there are more cooperatives than required, they have turned to operating unethically. And this is why the number of such cases has been increasing,” said Aryal. According to him, 36 cooperatives in operation in Palpa and Gulmi have been fined.

The cooperatives that kept disregarding the rules despite the DCO’s regular reminders have been subjected to fines. According to Aryal, seven cooperatives have asked for more time to submit their annual reports as per the Cooperative Act.

“They have asked for an extension of the time limit until mid-October. They will face action if they fail to submit their reports within the extended deadline,” said Aryal.

Around two to three cooperatives in these districts are scrapped every year. The tendency of opening cooperatives based on political access is greater nowadays which has resulted in dismal performance.