Former deputy inspector general (DIG) of Nepal Police, Chhabi Lal Joshi, was arrested in Kathmandu on Sunday following an ongoing investigation into the misappropriation of funds from Suryadarshan Saving and Credit Cooperative Limited, based in Pokhara. Joshi, one of the founders of the Gorkha Media Network, was arrested under a warrant issued by the Kaski District Police Office.
The arrest follows a probe by a parliamentary special panel investigating the financial mismanagement and crisis within Nepal’s cooperatives. Joshi’s arrest was confirmed by Nepal Police spokesperson Dhan Bahadur Karki, who explained that Joshi was brought to Pokhara by air for further proceedings.
The panel’s report, which was submitted to the House of Representatives, recommends legal action against several key individuals linked to the scandal, including Joshi, Gitendra Babu Rai (Chairman of the Gorkha Media Network), former managing director Rabi Lamichhane, and board member Kumar Ramtel. Rai remains on the run, with an INTERPOL diffusion notice issued for his arrest, while Ramtel is already in judicial custody for misusing cooperative funds.
The panel’s investigation revealed that funds from multiple cooperatives were allegedly diverted to finance the operations of the now-defunct Galaxy 4K television channel, which was owned by the Gorkha Media Network. Lamichhane, who was co-founder and managing director of the network before transitioning into politics, has also been implicated in the scandal, though the panel’s findings could not directly link him to the rerouting of funds.
Despite the investigation not providing direct evidence against Lamichhane, legal experts suggest that as the managing director, he could still be held accountable for mismanagement under the Company Act of 2006. Lamichhane and his party, the Rastriya Swatantra Party (RSP), have continued to assert that he was unaware of the cooperative funds being used for the media network.
The arrest of Joshi comes as the political landscape heats up, with the potential for Lamichhane and others to face prosecution as part of the broader investigation. In response to the unfolding developments, Lamichhane urged his supporters to remain alert, warning that the government could take extreme actions against him and his party. He framed the actions against him as part of a concerted effort to undermine the RSP’s influence in Nepal’s political scene.
The investigation is ongoing, with further arrests expected as the government seeks to address the widespread financial malpractice within the cooperative sector. Meanwhile, a 14-member RSP delegation, currently in China, has been recalled amid the intensifying political drama back home.
As the situation unfolds, Nepal’s political and legal systems brace for more developments surrounding the cooperatives scam and its key figures.
