Print Edition - 2014-11-26 | MONEY
62 defunct co-ops lose their permits
Nov 25, 2014-
The Division Cooperative Office, Birgunj has scrapped the licences of 62 cooperatives. Among those who lost their permits, 32 are savings and credit cooperatives, 24 multipurpose cooperatives, eight agriculture, three dairy producers and one consumer cooperative.
Most of these cooperatives were registered from 1990 to 2008 and had stated operating in rural areas as their objective. According to the officiating head Arun Kumar Basnet, they have cancelled the permits of cooperatives which have remained defunct for a long, have not conducted an audit of their accounts, have not submitted progress reports despite repeated reminders, have not conducted annual general meetings (AGM) and have not even responded to the government’s letters. The office maintains records of 670 cooperatives. Of them, 62 cooperatives have been scrapped while around 400 are found to be operating in a normal manner and fulfilling the requirements. They have been submitting their progress reports regularly. After the financial year closes, the cooperatives which have stopped functioning will be identified and proceedings to scrap them will move forward.
According to Basnet, the office has the authority to scrap the licences of cooperatives that have stopped working for two years. “A letter is sent to the concerned cooperative for clarification before it is terminated,” he said. “If the cooperative doesn’t respond even after this, a public letter is published in the media. And if they fail to report even after that, a decision is made.”
In the last fiscal year, 44 cooperatives were registered with the division office.
Published: 26-11-2014 13:13