Ending weeks of speculation, Rabi Lamichhane, chair of the Rastriya Swatantra Party and former deputy prime minister, has been arrested on charges of cooperative fraud and organized crime.
On Friday evening, a team from the Central Investigation Bureau (CIB) apprehended Lamichhane at his party’s head office in Banasthali, Kathmandu. He was subsequently taken to Pokhara, approximately 200 kilometers west of the capital, for trial, as the case against him is being processed at the District Police Office in Kaski.
Earlier that day, the Kaski District Court granted permission for his arrest. Alongside Lamichhane, 13 others were also implicated, including Bishal Tamang, Navin Achhami, and Rabina Rimal, all connected to fraud cases involving the Pokhara-based Suryadarshan Cooperative.
A special parliamentary probe committee formed in May revealed Lamichhane’s involvement in the misuse of millions of rupees allocated to Gorkha Media Network, where he was managing director prior to his political career starting in June 2022. Additional investigations have pointed to his misuse of public funds across various cooperatives.
The lead-up to his arrest gained momentum following the apprehension of former deputy inspector general (DIG) Chhabi Lal Joshi on September 22, who was accused of misappropriating funds from Suryadarshan Savings and Credit Cooperative. Joshi was one of the founders of the media company Lamichhane previously managed.
The Arrest Process
Rumors regarding Lamichhane’s impending arrest circulated throughout Friday. Notably, all seven judges at the Kaski District Court were absent until the afternoon—six on leave, while Judge Krishna Jung Shah was delayed due to bad weather. The police team seeking to arrest Lamichhane was made to wait until Judge Shah arrived around 3 PM.
After reviewing the necessary documents, Judge Shah granted the police permission to arrest Lamichhane at approximately 5 PM. Following this, Kaski police issued a request to the CIB to execute the arrest. Lamichhane signed the arrest warrant around 6:45 PM.
Legal Proceedings Ahead
Lamichhane is scheduled to appear in Kaski District Court on Sunday for a custody extension hearing. The court has the discretion to determine the length of his custody, which can initially last up to a week but may extend to 60 days due to the nature of the charges. Should money laundering allegations arise, his custody could be extended to 90 days.
Despite his arrest, Lamichhane will retain his position as a member of parliament and party president, as lawmakers are not suspended until they face judicial custody or a conviction. Even if convicted, he would not lose his position, although he would forfeit pay and benefits during his suspension.
Political Reactions
In response to his arrest, Lamichhane took to social media, expressing his outrage and criticizing the government for perceived hypocrisy. He claimed that corrupt officials are being protected while he faces baseless charges.
The Rastriya Swatantra Party denounced the arrest as politically motivated, asserting that a parliamentary investigation had previously cleared Lamichhane of any wrongdoing. They emphasized their commitment to the rule of law while condemning what they termed a politically charged attack on their leadership.
Senior advocate Dinesh Tripathi dismissed the allegations of political motivation, asserting that there is ample evidence against Lamichhane. He highlighted that the arrest was long overdue and that it is inappropriate to politicize the legal proceedings.
As the investigation unfolds, the political landscape in Nepal remains charged, with implications for both Lamichhane and the broader cooperative sector.