Suggested recovery of depositors' funds from distressed co-operatives and directors' assets

"Regarding the return of the savings of the savers of the troubled cooperatives, it seems that the refund plan should be carried forward on the basis of priority," the committee said in the work to be done in the first phase, "returning the savings from the institutional assets, freezing the institutional assets of the cooperatives and the immediate assets of its directors and associated persons, Making legal and institutional arrangements to take over the assets of cooperative organizations and related persons within their respective responsibilities at the central, state and local levels, to collect debts, and to return deposits of depositors.'

Likewise, The committee has suggested to prepare an inventory of the assets of the cooperative organizations and their directors and other involved persons, according to the inventory, the institutional property mechanism will take charge of the assets, and the debt invested by the organization should be recovered as government debt.

In the suggestion of 'turning (selling) the immovable assets of such institutions into movable assets, determining the ratio of the amount to be returned based on the preference of the savers and the available assets', it is said, 'return the savings in the order of priority as determined.'

In the second stage, if the institutional assets are insufficient, it is suggested to return them from personal assets, to take control of movable/immovable assets of directors/affiliated persons and family members and others involved, and to convert (sell) immovable assets into movable assets. Similarly, determining the ratio of the amount to be returned based on the preference of the depositor and the available assets, returning the savings according to the determined priority, as the cooperative organizations become problematic, the office may be closed and the directors may also be suspended or imprisoned, and the interest of the saver's savings for taking a loan by mortgaging the invested property It has been suggested to auction the property as there is a tendency to capitalize it and ignore the saving amount of the savers and auction it in the loan amount.

The report of the committee "recommends the government of Nepal to correspond with banks and financial institutions through Nepal Rastra Bank to make necessary coordination regarding the collection of the loan amount by auctioning the property at the market price and providing the remaining amount to the troubled cooperative management committee". There have been problems such as setting up some fake debtors or not deducting the amount of debts that have been repaid.

The government declared 31 organizations bankrupt.