On April 17, govt decided transport bodies could not renew their registration as NGOs from the new fiscal

Kathmandu, July 20

Amid criticism that the government was showing leniency towards invalidated transport syndicates, it has decided to initiate the process of scrapping registration of institutions and committees related to the sector, and bring all the movable and non-movable assets of such bodies under the government’s control.

A meeting of Minister of Home Affairs Ram Bahadur Thapa, Minister of Physical Infrastructure and Transport Raghubir Mahaseth and joint secretaries of the ministries took a decision to this effect on Sunday.

Putting an end to the transport syndicate system, the Cabinet had decided on April 17 that such transport bodies could not renew their registration as non-profit organisations from the beginning of the fiscal on July 17, and that they should register with the Office of the Company Registrar.

The meeting also approved a work procedure, whereby due financial responsibility to be fulfilled by the transport bodies related to disbursement of treatment cost for the injured, staff salaries and electricity and water bills would be arranged with the amount in bank accounts of such transport bodies.

As per the procedure, district administration offices will arrange the reimbursement in coordination with the Ministry of Finance, Nepal Rastra Bank and Department of Transport Management. The DAO concerned will issue a 35-day notice seeking details of such financial responsibility.

A committee coordinated by assistant chief district officer will be formed in each district to study the submitted details, ascertain the assets of transport bodies, and make a recommendation.

The committee will include representatives of the department of transport management, district attorney’s office, district police office, and district treasury controller office.

The committee’s recommendation, including the recommendation of the DAO, will be forwarded to the finance ministry for final approval for reimbursement of the amount. The ministry will then direct banks and financial institutions concerned through the central bank to disburse the amount.

As per the government decision, the department of transport management will initiate the process of implementing e-ticketing and digital dialling system and studying route permit issuance modality, bus-park management and accidental insurance.

Transport operators who have already acquired root permits should compulsorily register with the OCR to get their permits renewed.

Transport entrepreneurs, however, expressed ignorance about the government’s decision. Federation of Nepalese National Transport Entrepreneurs Chairman Yogendra Nath Karmacharya said they had yet to receive any formal communication from the government about the decision.

“Once we get the relevant document, we’ll hold consultations and come up with an official position on the matter and plan our next move,” he said.