KATHMANDU: The government has requested the Supreme Court to establish dedicated judicial benches in 10 districts with the highest backlog of cooperative fraud cases, aiming to expedite justice for thousands of affected depositors.
Minister for Land Management and Cooperatives Pratibha Rawal on Saturday submitted a proposal to Chief Justice Dr. Manoj Kumar Sharma, recommending dedicated benches in the district courts of Kathmandu, Lalitpur, Bhaktapur, Kavrepalanchok, Kaski, Parsa, Jhapa, Morang, Sunsari, and Saptari.
According to the minister’s private secretary, Bhim Bahadur Budha, the proposal is intended to accelerate hearings in districts overwhelmed by cooperative fraud litigation, enabling victims to recover their savings more quickly.
The move follows a Supreme Court directive issued on January 24, which instructed the government to study the feasibility of establishing dedicated courts where cooperative crime cases are concentrated. Acting on the order, the ministry formed a five-member task force led by Ram Kumar Mahato, Executive Director of the National Cooperative Regulatory Authority. The committee recommended creating dedicated benches in the 10 districts.
The report describes cooperative fraud as a major socio-economic crime that affects large numbers of citizens, their savings, and the country’s financial system, arguing that such cases require specialized and priority-based judicial handling.
It also warns that prolonged legal proceedings delay justice, prevent victims from recovering their deposits, and increase the risk of offenders benefiting from legal delays. The task force concluded that dedicated benches are essential to restore public confidence in the cooperative sector and strengthen financial governance.
Meanwhile, the Problematic Cooperative Management Committee said it has refunded Rs. 179.3 million to 9,881 depositors from 23 cooperatives declared troubled. However, 76,399 depositors are still awaiting the return of approximately Rs. 45.05 billion.
Including repayments made by previous governments, the overall recovery rate stands at just 2.09%, highlighting the scale of the cooperative crisis.
