Minister for Land Management, Cooperatives, Federal Affairs, and General Administration Pratibha Rawal announced that resolving the issues faced by landless squatters and victims of cooperative fraud is a top priority for the government. Speaking to journalists at Bharatpur Airport in Chitwan, Minister Rawal emphasized that ministers should proactively reach out to the public rather than waiting for citizens to approach them. She stated her intention to embark on a campaign to inform the public about government initiatives and listen to their grievances.Minister Rawal confirmed that efforts to return savings to victims of problematic cooperatives have begun and will be accelerated. She also noted that legal hurdles preventing the distribution of land ownership certificates to the landless have been removed. Nepal’s Constitution of 2072 (BS) aims to achieve rapid economic growth and eliminate economic inequality through the participation and development of public, private, and cooperative sectors.
Cooperative fraud victims await Rs 7 billion in refunds
According to Minister Rawal, the process of returning savings to victims of troubled cooperatives has commenced and will be expedited. She highlighted the urgent need to return these savings, noting that many cooperative victims have been suffering for a long time. The government is also prioritizing efforts to compel cooperatives that have not returned depositors’ money to do so.Nepal Police data indicates that 149 cases of cooperative irregularities have been registered nationwide in the past year, leading to the arrest of 271 individuals, while 1,110 suspects remain at large. Approximately Rs 7 billion is estimated to be at risk due to cooperative fraud. Between Magh 15, 2080 (BS) and Mangsir 9, 2081 (BS), Nepal Police issued Red Corner Notices against nine individuals who fled the country after being accused of cooperative fraud.In Madhesh Province, cooperative fraud cases are also on the rise. From 2078/79 (BS) to the current fiscal year’s Baisakh, police have filed 25 cooperative fraud cases in court. These cases involve fraud amounting to Rs 1.53 billion, with 38 individuals arrested and 152 still at large, according to police reports.
Land ownership certificates for 1.5 million landless
Minister Rawal stated that legal obstacles that previously hindered the provision of land ownership certificates for those residing in their current locations for extended periods have been removed. She affirmed that policy reforms are complete, and the government will address any further challenges encountered during implementation.The National Land Commission has announced that it will begin distributing land to landless Dalits, landless squatters, and unmanaged settlers starting next Magh. It is estimated that there are currently 1.5 to 1.7 million landless squatters in Nepal. The government has already distributed land ownership certificates to approximately 5,000 landless and unmanaged settlers. Minister Rawal assured that the government is working to alleviate concerns among residents about potential displacement from their current homes.
Current status and future plans for the cooperative sector
According to the Economic Survey 2080/81 (BS), the total deposit liability of cooperative institutions in Nepal stands at Rs 478 billion. Approximately 33,000 cooperatives of various types are registered nationwide, with around 7 million members. These institutions have collected Rs 478 billion in deposits, disbursed Rs 426 billion in loans, and provided employment to over 93,000 Nepali citizens as of the fiscal year 2079/80 (BS).To address long-standing issues in the cooperative sector, the government has established the National Cooperative Regulatory Authority. Additionally, the government is moving forward with plans to establish a Credit Information Center, a Credit Recovery Tribunal, a Deposit Protection Fund, and a second-tier regulatory body. The ‘Cooperative Sector Reform Suggestion Task Force,’ led by National Planning Commission member Dr. Jayakant Raut, submitted its report on Ashoj 22, 2080 (BS), and the government is committed to implementing its recommendations.While Minister Pratibha Rawal emphasized the importance of informing the public about government actions and future plans, and engaging directly with them to hear their problems, a clear date and schedule for this public outreach campaign have not yet been announced.
