Depositors of problematic cooperatives have resumed protests in Kathmandu, claiming the government has repeatedly failed to implement agreements to return their money. Demonstrators gathered at Maitighar, Wednesday to protest.

President of the Federation of Cooperative Depositors Protection National Campaign Kushal KC stated that they resumed protest due to the government’s inaction.

“We have been deceived by repeated agreements,” he said. “This time, the protest will not stop until our demands are met.”

Over 300 organizations joined forces last year under the Federation of Cooperative Depositors Protection National Campaign, asserting that their savings remain unrecovered from problematic cooperatives. A seven-point agreement was signed between then-Minister for Land Management, Cooperatives, and Poverty Alleviation Ranjita Shrestha and cooperative victims on August 3, 2023 .

Subsequent agreements were reached under Minister Balram Adhikari—a seven-point deal in March 20, 2024 and an eight-point deal in August 24, 2024 . However, three months after the latest agreement, victims claim no progress has been made.

In the budget for the current fiscal year (FY 2024/25 ), the government announced measures to return savings of up to Rs 500,000 to the depositors. This would be backed by collateral from the properties of directors of problematic cooperatives. Despite this promise, no steps have been taken to implement it.

The Parliamentary Special Committee on Misuse of Savings of Cooperative Institutions reported that savings recovery remains uncertain. Its analysis of 22 cooperatives officially declared troubled and 40 others facing scrutiny revealed liabilities of Rs 87.82 billion against assets of only Rs 82.32 billion, including loan investments. The committee's report stated that the institutions lacked a strong foundation for recovering loans, collecting interest, investments made elsewhere, and non-banking assets.

The general public claims approximately Rs 50 billion from cooperatives declared problematic by the federal government. Informal estimates suggest over 500 cooperatives across Nepal are in financial distress, collectively owing more than Rs 200 billion in savings to the public.

While the government insists it is pursuing legal actions and reforms, cooperative victims remain unconvinced and determined to continue their protests.