Kathmandu Post reports a high-level committee has been formed to ease the problems of Oriental Cooperative. The committee has invited applications from depositors, who lost their money following the collapse of the cooperative.
The applications can be submitted till May 20 at offices of the district coordination committees based in several districts including Biratnagar, Birgunj, etc. Applications can also be submitted at the head office of the Troubled Cooperative Institution and Association Management Committee in Pulchowk.
Depositors of Oriental Cooperative had lost at least Rs 5.2 billion following its collapse in 2013. The cooperative had gone bust after its key promoter, Basnet, illegally invested depositors’ money in the real-estate market, which crashed.
Sources say lending practices in violation of norms and financial mismanagement had pushed the cooperative into a serious financial crisis.