Nepal’s Ex Minister Faces Extended Remand Amid Financial Fraud Allegations

Rabi Lamichhane, former Home Minister of Nepal and leader of the Rastriya Swatantra Party, will remain in custody for an additional 15 days as investigations into serious allegations of cooperative fraud, organized crime, and money laundering continue.

The Kaski District Court, under Judge Himalal Belbase, issued the extension applying it to 3 co-accused: former Deputy Inspector General of Police Chhabilal Joshi, Leela Pachhai, and Ram Bahadur Khanal.

Lamichhane was first arrested on October 18 by a Central Investigation Bureau team at the RSP’s central office in Kathmandu. His detention, now exceeding 40 days, has been repeatedly extended as authorities delve deeper into the allegations.

The charges against Lamichhane primarily stem from his time as managing director of the now-defunct Gorkha Media Network. Investigations, including one by a parliamentary special committee, have accused him of diverting cooperative funds into personal accounts, including an amount of NPR 30 million.

These funds were reportedly misappropriated from multiple cooperatives, prompting the registration of a fraud case with Kaski district police.

The case has further expanded with allegations of financial irregularities during Lamichhane’s tenure at Galaxy 4K Television, which he managed before entering politics in 2022. Findings from a parliamentary probe earlier this year highlighted discrepancies in the media company’s finances, adding weight to the ongoing inquiries.

A day prior, government attorneys and representatives of victims argued for the remand extension, citing the need for additional time to analyze documents and gather evidence. Lamichhane’s legal team, however, refuted the claims, arguing that the allegations lacked substantial proof and opposing the remand extension.

The investigation has broadened beyond Kaski, with authorities now scrutinizing Lamichhane’s involvement in alleged financial misconduct linked to other cooperatives. Police transported him to Butwal to investigate the diversion of funds from the Suryadarsan Cooperative.

Arrest warrants have also been issued in Kathmandu and Chitwan for alleged financial misdeeds involving the Swarnalaxmi and Sahara Cooperatives, respectively.

Lamichhane’s extended detention reflects the gravity of the accusations and underscores law enforcement’s determination to uncover the full scope of the alleged financial misconduct.

As investigations unfold, the high-profile case has cast a spotlight on corruption and accountability in Nepal’s cooperative sector.