Following the monitoring of 40 cooperatives operating in Kathmandu, the Kathmandu Metropolitan City has asked the Central Investigation Bureau (CIB) of Nepal Police to initiate action against seven allegedly involved in the irregularities.

The inspection, which began on March 29, and concluded on June 21, focused on cooperatives within the metropolitan area. Based on the report prepared after the monitoring, irregularities were found in six savings and credit cooperatives and one multipurpose cooperative, Dhruva Kumar Kafle, head of the department of cooperatives of the metropolis, said.

According to Kafle, the cooperatives under investigation include Sumeru, Square, Rural Development, Satkar, Mahabauddha, and Namo Harati, which work in the savings and credit sector. The list mentions one multipurpose cooperative as well.

A letter has been sent to the CIB, as further investigation is required regarding the collection of savings, utilisation of the collected funds, loan disbursement, and investments, he said.

Sushil Subedi, head of the metropolitan cooperative regulation division and also secretary of the monitoring committee, stated that 32 cooperatives included in the monitoring list were not sued as the committee found them in sound condition.

The Kathmandu Metropolitan Cooperative Act 2074 provisions penalties ranging from a fine of up to Rs500,000 to imprisonment of up to 10 years, depending on the severity of the offence.

In line with the government's decision on July 16, 2017, to transfer the responsibility of the former Division Cooperative Office to local authorities, the metropolitan city now oversees 1,922 cooperatives, including newly registered ones