Section 104: Organisation or Association may be declared problematic

1) In case any Organisation or Association is found to have the following circumstances from the inspection or checking of accounts conducted under this Act, the Registrar may recommend that the Ministry declare such Organisation or Association as a problematic Organisation or Association:

(a) Commission of any act against the interests of the members,

(b) Failure to fulfil the financial liabilities to be fulfilled by the Organisation or Association, or inability to bear the liabilities to be borne, or occurrence of a situation of inability to make payment,

(c) Failure to refund the savings of members according to the agreed terms and conditions,

(d) Operation of the Organisation or Association against this Act or the Rules and Byelaws framed under this Act,

(e) Emergence of a situation of probable insolvency of the Organisation or Association, or facing a significantly serious financial crisis,

(f) In case at least twenty-five members of an Organisation or Association submitted an application to the Registrar stating that the Organization or Association did not refund the savings amount of members within the time set to refund and it has been found from investigation that any of the circumstance situations referred to in clauses (a) to (e) has seen occurred.

2) In case the recommendation referred to in sub-section (1) is received, the Ministry may declare such an Organisation or Association as a problematic Organisation or Association.

3) Notwithstanding anything contained elsewhere in this Section, in case a Commission formed by Government of Nepal according to the prevailing laws recommends to declare any Organization or Association as problematic Organization or Association or if such a Commission has declared any Organization or Association as a problematic or based on the number of complaints filed in such a Commission and on rationality, the Ministry may declare such an Organization or Association as a problematic Organization or Association.