Despite the programme, some depositors say they have received only Rs 5,000 despite having deposited hundreds of thousands or even millions of rupees. The government has not announced a clear timeline for completing repayments.
The fund's ability to provide relief depends heavily on recovering loans and selling cooperative assets. Identifying borrowers, tracing assets held by operators and pursuing legal recovery can take years. Some operators remain absconding, while victims suspect that others have hidden or transferred their assets.
The government plans to replenish the fund through loan recoveries and asset sales. However, its capacity to provide substantial assistance will remain limited unless those efforts produce sufficient funds.
Another concern is the programme's coverage. It applies only to cooperatives formally declared problematic by the government. Although the federal government has classified 23 cooperatives under this category, victims argue that hundreds more should be included.
According to the Problematic Cooperative Management Committee, around 76,000 depositors are owed nearly Rs 46 billion by cooperatives under its jurisdiction. The committee says approximately 11,000 depositors have received full or partial payments.
The government initially prioritised people whose savings did not exceed Rs 10,000. In October, it expanded the priority groups to include single women, senior citizens, Dalits and indigenous communities, people with severe disabilities and those suffering from life-threatening illnesses.
Land Management, Cooperatives and Poverty Alleviation Minister Pratibha Rawal has said the government will not abandon the victims. Discussions are also underway to establish dedicated police desks and special court benches to accelerate investigations and hearings related to cooperative fraud.
The committee says around 11,000 depositors from cooperatives including Shivashikhar, Kantipur, Krishi Bikas and Gorkha have received assistance worth Rs 710 million. The payments were made through cash refunds and adjustments against outstanding savings, either partially or in full.
Committee information officer Bhawana Pokharel said authorities had intensified action against borrowers who took loans from troubled cooperatives but failed to repay them. Bagmati Province Cooperative Registrar Acharya said his office was making efforts to facilitate refunds in line with ministry directives.
However, the government has yet to specify when all affected depositors will receive their money. Victims say announcements and relief guidelines alone are insufficient to resolve the crisis. They are seeking the inclusion of more troubled cooperatives in the official list, recovery of assets held by operators and borrowers, transparent verification of depositors' claims and a clear repayment schedule.
The effectiveness of the refund programme will depend on the amount authorities can recover, the transparency of its distribution and how quickly depositors receive their savings.
