Kathmandu: Under the supervision of the Cooperative Department of the Kathmandu Metropolitan City, Buddha Darshan Saving and Credit Cooperative Ltd. has refunded savings deposits to 34 depositors.

The cooperative, which operates in Ward No. 6 of Kathmandu Metropolitan City, had invited 70 member depositors with savings of up to Rs 150,000 to collect their funds from the department on Wednesday. Among those called, 34 depositors received their savings back.

According to the cooperative’s Vice-Chairperson Rabin Lama, some depositors did not show up after hearing various rumors. He said the cooperative would again request them to come and collect their deposits on Thursday.

The cooperative has also announced plans to return deposits of up to Rs 500,000 within the next month. Lama said coordination with the Cooperative Department would continue to recover loans from borrowers while gradually repaying depositors.

According to him, deposit amounts in the cooperative range from as low as Rs 1,115 to as high as Rs 80 million.

The Cooperative Department has been facilitating both deposit refunds and loan recovery. Department Chief Dhruva Kumar Kafle said the process begins with receiving formal claims from depositors, followed by discussions and mediation between cooperative operators and deposit claimants.

He said borrowers are contacted through SMS, registered letters, and public notices requesting repayment of loans. The process starts at the ward level, where applications addressed to the ward chairperson are reviewed and mediation is initiated through the Ward Women’s Network.

Kafle added that if cases involving bounced cheques are reported within the legal timeframe, the department recommends legal action. If disputes cannot be resolved at the ward level, the department steps in for further mediation. Operators who refuse to cooperate may face recommendations for action, while non-paying borrowers can also be referred to concerned authorities.

The department stated that savings and loans are being recovered either in lump sums or through installments. In cases where cooperatives have shut down or operators remain out of contact, notices are issued through SMS and letters before further legal procedures are initiated.

According to Kathmandu Metropolitan City, 726 cooperatives within its jurisdiction remain in contact with authorities, while 1,186 cooperatives are currently out of contact.

Meanwhile, the Cooperative Department has assigned Ward Women’s Networks additional responsibilities related to cooperative regulation and management. The networks will assist in coordination, mediation, and dispute resolution to help maintain cooperative principles, business promotion, and good governance.

Under the arrangement, the networks will collect individual or joint applications from depositors seeking refunds, contact cooperatives or borrowers through SMS or official letters, and maintain records related to claims, loan documents, and discussions.

They will also help recover loans from borrowers who have defaulted. If borrowers continue to ignore notices from ward offices, the networks may recommend restrictions on certain public services and inform borrowers about possible actions.

The department said the networks will further assist in monitoring the financial condition of cooperatives, ensuring transparency, accountability, and coordination among concerned agencies for resolving cooperative-related issues.