KATHMANDU, JANUARY 10

Kaski District Court set a bail of Rs 6.5 million for Rastriya Swatantra Party Chair Rabi Lamichhane in the case of misappropriation of cooperative funds, organised crime and money laundering filed against him and 41 other individuals.

"Out of 42 defendants, seven contested the case and they all got bail today. Six of them were released on bail and one defendant-Lila Pachai-who failed to post the bail was sent to judicial custody," said Information Officer of District Court, Kaski Suraj Adhikari. Thirty-five defendants are still absconding in the multi-million fraud case.

Lamichhane posted the bail set by the bench of Kaski District Court judge Nitij Rai and walked out of custody after more than 80 days. Two other defendants-Ram Bahadur Khanal and former DIG Chhabilal Joshi-were also released from police custody after they posted the bail. The court had set the bail of Rs 8.8 million for Joshi and 1.5 million from Khanal.

Lamichhane who faces accusations of misappropriating cooperative funds in Rupandehi, Kathmandu, Chitwan and Parsa-is not out of the woods yet.

Deputy Attorney General Sanjeeb Raj Regmi told THT that the government attorneys had urged the District Court Kaski to pass an order authorising the police to send him to Kathmandu police who can produce him to the District Court Kathmandu where the government has already filed a case of misappropriation of Swarnalaxmi Multipurpose Cooperatives.

"Although the District Court did not pass an order telling police to produce Lamichhane to other court where a similar case has been filed against Lamichhane, the police can still take him into custody after he is released from custody in Kaski and produce him to Kathmandu District Court where the government has already filed the case," Regmi added.

"The prevailing laws say that the police can produce a person to the concerned court if a case has already been filed against him/her," Regmi said.

He further said that the police could also produce Lamichhane to Rupandehi police which has been investigating similar charges of misappropriation of cooperatives funds.

"Now it remains to be seen what Nepal Police does with Lamichhane," he argued.

Lamichhane, Joshi and some other defendants face accusation of misappropriating cooperatives funds when they worked for Gorkha Media Network Pvt Ltd. that ran Galaxy Television. Lamichhane was the managing director of Gorkha Media Network Pvt Ltd. However, Lamichhane denies any wrongdoing.

Although RSP supporters appeared elated after the court order, Lamichhane is not out of the woods yet as multiple cases are being investigated against him in Rupandehi, Kathmandu, Chitwan and Parsa district.

As the court prepared to announce the order in Lamichhane's case after hearing the oral submissions from both sides, RSP leaders and supporters gathered outside the court anticipating his release on bail.

RSP acting president DP Aryal, legislator Sobita Gautam, Spokesperson Manish Jha, Hari Dhakal and other leaders were seen outside the court.

Leaders and cadres were overjoyed and chanted slogans in support of Rabi Lamichhane. "Hail Ghanti, (a symbol of the party)," they chanted.

RSP Spokesperson lawmaker Manish Jha said that his party leader Lamichhane would contest all allegations levelled against him in other districts. "Those who were accused of mounting pressure on the court in the past weeks, were wrong. We were expecting justice from the court and having more expectation from the court is a testament of having faith in the court," he said. "We respect the court."

Another RSP lawmaker, Sobita Gautam, who is also a lawyer and had even argued in court on Lamichhane's behalf, told mediapersons that she respected the court's order. She claimed the state attempted to use force against Lamichhane, but the court acted independently.

Stating that her party had organised a street protest to oppose Lamichhane's arrest, she said that her party had not interfered with any court proceedings since the case was registered against him.

"From that day on, we said that we would obey all the court orders," she said.

Gautam said that her party protested Lamichhane's arrest in the past, as the government acted with prejudice against the party leadership who represented 1.1 million voters.

"But we always said that we would follow the court's orders and support justice. We have faith in the court and today, that faith has been upheld," she added.

On December 22, 2024, the District Government Attorney's Office, Kaski had filed a case against Lamichhane in Kaski District Court, charging him with cooperative fraud, organised crime, and money laundering.

Lamichhane, along with the then-directors of Galaxy Television, GB Rai and Chhabilal Joshi, have also been charged with misappropriating the cooperative funds.

Following the Nepali Congress's relentless demand for an investigation into Lamichhane, the then-Home Minister, and Deputy Prime Minister's involvement in cooperative deposit misappropriation, the government launched investigation against Lamichhane and other people accused of misappropriation of cooperative funds after a Parliamentary Probe Committee led by CPN-UML lawmaker Surya Bahadur Thapa Kshetree investigated allegations of misappropriation of cooperative funds against Lamichhane and other people.

The committee had investigated the matter and recommended action against Lamichhane, citing that cooperatives' funds were illegally transferred to Gorkha Media Network.

However, Thapa, in an interview with THT had said earlier, "Although it appears that Rabi Lamichhane was not directly involved in bringing cooperative funds, he has spent the cooperative funds. Since it is illegal, we have recommended action against Rabi Lamichhane."

Following the cabinet's decision to implement the report, Lamichhane was pulled into the probe. The Kaski District Police completed the investigation and recommended actions against 42 individuals, including Lamichhane, to the District Government Attorney Office in Kaski.

Lamichhane, who has held the home portfolio earlier twice, has been suspended as a lawmaker after the government filed the case against him.

Lamichhane has been suspended under article 27 of the Money Laundering Prevention Act, 2008, which provides for the automatic suspension of public post holders who have been indicted under money laundering cases. Lamichhane will remain suspended till his case is decided by the court.

Police had arrested Lamichhane on October 18 and had taken him to Pokhara the same day.