Nepal’s Top Court Upholds Former Home Minister Lamichhane’s Judicial Custody

Lamichhane's Judicial Custody

Nepal’s Supreme Court upheld the judicial custody of former Home Minister Rabi Lamichhane in connection with a major cooperative fraud and organized crime case, rejecting a habeas corpus petition filed by his wife, Nikita Paudel.

A bench comprising Justices Nahakul Subedi and Balkrishna Dhakal ruled that there was no error in the Tulsipur High Court’s April 4 decision to remand Lamichhane and former DIG Chhabilal Joshi to custody, citing the seriousness of the allegations and the available evidence.

“Based on the immediately available evidence, it could not be reasonably believed that the defendants were innocent of the alleged offence,” the court stated.

Lamichhane and Joshi will remain in custody while the Rupandehi District Court continues proceedings in the Supreme Cooperative fraud case. They will only be released if acquitted and cleared of other pending charges.

Timeline Of The Case

Lamichhane was initially released on bail by the Rupandehi District Court on January 26, after posting NPR 10 million. The prosecution appealed, and the High Court overturned the bail order, citing the gravity of the charges and potential risk of interference.

The Supreme Court has now affirmed that decision, dealing a major blow to Lamichhane’s legal efforts to avoid pre-trial detention.

Allegations & Financial Irregularities

The case involves serious accusations of embezzlement and misuse of cooperative funds. Investigators allege:

NPR 20 million was transferred to Lamichhane’s personal account.

NPR 25 million was deposited into Joshi’s account.

NPR 109.9 million in total was funneled through Gorkha Media Network, co-run by Lamichhane, Joshi, and fugitive GB Rai.

The fraud case, filed in April last year, lists 28 defendants and seeks damages of NPR 860 million. Of them, 17 face additional charges. Lamichhane is also on bail in three other cooperative fraud cases involving significant sums.

Political & Legal Fallout

Lamichhane, who left the media industry to launch the Rastriya Swatantra Party in 2022, has denied wrongdoing. However, the court’s decision signals a tightening legal noose around the former minister, as Nepal’s judiciary moves firmly against financial crimes involving high-profile figures.

With the court’s ruling, Lamichhane remains in custody pending trial — a significant development in one of Nepal’s largest cooperative fraud cases to date.