Minister Adhikari urges phased rollout of Cooperatives Act provisions

KATHMANDU: Minister for Land Management, Co-operatives and Poverty Alleviation Balaram Adhikari has urged a phased implementation of the Cooperatives Act’s provisions, arguing that a gradual roll-out will ensure smoother compliance across the sector.

Speaking on Thursday at the 15th-anniversary event of Nepal Society of Co-operative Journalism (CJN), Minister Adhikari stressed that co-operatives must adhere strictly to the original Act’s regulations, directives and its dual-role clause. He warned that there is no alternative but to comply with the law as it stands.

“At the time of the Act’s amendment, no one mentioned the issue of the main business. You only became aware after the directive and standard were issued. If the Act had allowed for changes through a procedure, it would have been possible to amend it, but that is not the case. For now, let’s operate with what we have,” he said.

Co-operatives Minister Adhikari called on all stakeholders to collaborate on practical solutions, highlighting the government’s readiness to amend the Act if necessary to foster sector growth. He warned that the absence of a definitive co-operative database has hampered operations and insisted that new registrations can proceed only once existing co-operatives are realigned with statutory requirements.

“We are ready to amend the Cooperatives Act and related laws to link co-operatives with economic prosperity. However, our needs must also be identified. Complaining will not help,” he added.

The minister clarified that national rules and guidelines should be tailored to Nepal’s context and that there is no need to over-emphasise “international recognition”, although global practices may inform future legislation.  

Om Devi Malla, Chairperson of National Cooperative Federation of Nepal (NCF), said that strictly enforcing the two-tier directorship rule could exacerbate loan-recovery challenges. She said that she has petitioned the registrar and the minister to defer its implementation until January 15, noting that premature enforcement risks destabilising co-operatives already under strain.

Khagraj Sharma, Chairperson of National Cooperative Regulation Authority (NCRA), said the Cooperatives Act contains ambiguities that must be resolved. He insisted that until the main business is redefined, all co-operatives deriving more than 30% of their transactions from savings and loans must follow NCRA directives.

Umesh Dhungana, registrar of the Department of Cooperative, argued that the sector should be a catalyst for investment and employment. He cautioned that co-operative values are fading and highlighted that regulatory authority has been devolved to 764 local bodies under federalism, necessitating uniform standards across all levels.

Chandra Prasad Dhakal, Chairperson of Nepal Federation of Savings and Credit Co-operative Unions (NEFSCUN), criticised the NCRA for failing to define savings-and-loan co-operatives seven months after its inception. He accused the authority of straying from its core priorities and demanded clarity on which co-operatives qualify under the savings-and-loans category.

Yadav Humagain, Founding President of CJN, reminded attendees that the CJN was established to enhance journalists’ capacity and support the development, promotion and oversight of the co-operative sector.

At the same event, CJN presented its annual National Journalism Award – 2082 to Rita Raut, senior correspondent at Nepal Press. Minister Adhikari handed her a letter of honour and Rs 20,000 in cash.

Another journalist, Keshav Raj Joshi, was also recognised with the CJN Founder Honour for his contributions to co-operative journalism.