KATHMANDU, Oct 25: Former deputy prime minister and home minister Rabi Lamichhane, who is allegedly involved in a cooperative fraud case, is now also being investigated for alleged money laundering. He will be investigated for asset laundering as well, as police are recording his statement in the Surya Darshan Cooperative fraud case following his arrest last week.
Although the investigation began last year, it was halted when Lamichhane joined the government as the deputy prime minister and home minister last year. "Details were sought from banks last year. The investigation will now proceed based on that," said an officer at the Department of Money Laundering Investigation (DoMLI). "Even though the investigation was halted when he joined the government, it will be easier to investigate him now that he is under arrest."
The official mentioned that the DoMLI had sought details when Lamichhane during a press conference organized on January 22, 2024 claimed that there was no financial transaction involved in the sale of Galaxy Television shares. The DoMLI wrote to 20 banks, requesting account details and documents. However, the investigation was put on hold after Lamichhane assumed the roles of a deputy prime minister and home minister.
Sources say that now the investigation will move forward as he has already been arrested. After the court granted an additional seven days to investigate charges of organized crime, fraud, and money laundering, the DoMLI is set to resume its ongoing investigation.
DoMLI receives 95 complaints against money laundering in the fi...
Along with Lamichhane, the Kaski police have also been granted seven more days to investigate former DIG Chabilal Banjade (Joshi) and Leela Pachhai. The DoMLI will investigate money laundering allegations against them as well.
Last year, the DoMLI had sent a letter seeking bank account details, account opening documents, and bank balances of Lamichhane for the investigation into money laundering offenses. Along with Lamichhane, details of Geetendra Babu (GB) Rai, the owner of Galaxy 4K Television, were also requested. The DoMLI wrote letters to several banks, including Rastriya Banijya Bank, Nabil Bank, Nepal Investment Mega Bank, Standard Chartered Bank, Himalayan Bank, SBI, Everest, NIC Asia, Kumari and Agriculture Development Bank.
Lamichhane, who acquired ‘sweat shares’ in an illegal business while serving as the Managing Director of Galaxy 4K, was implicated in suspicious transactions. However, despite the DoMLI’s request for details, the investigation was halted at that time.
The DoMLI is investigating not only the cooperative case but also business activities Lamichhane conducted in Nepal while he was a US national. "There will also be an investigation into the source of money sent from Nepal for the maintenance of his wife and children in the US and the process of transferring it," said an official at the DoMLI.
Lamichhane, who is also the chairman of the Rastriya Swatantra Party (RSP), is currently recording his statements to the Kaski police. In his statements, he has claimed that the state is taking revenge against him, denying any wrongdoing. His party, the RSP, is organizing protests, alleging political revenge. The RSP plans to hold a protest centered in Kathmandu starting Friday.
More arrest warrants against Lamichhane and Joshi
The Rupandehi District Court has issued arrest warrants against Rabi Lamichhane and former DIG Chhabilal Joshi. Judge Shyam Prasad Shrestha approved the warrants as part of the investigation into organized crime related to the Supreme Cooperative fraud case in Butwal.
The court has authorized the arrest of 12 individuals connected to the case. Previously, Joshi provided a two-day statement regarding the illegal transfer of Supreme Cooperative funds to Gorkha Media Network, where Lamichhane served as the managing director.
Both Lamichhane and Joshi are currently detained in Pokhara, where police are conducting further investigations, following orders for the same by the Kaski District Court.
