KATHMANDU, May 25: Rabi Lamichhane, Chairperson of the Rastriya Swatantra Party (RSP), must remain in custody until the district court delivers a verdict in his case. The Supreme Court (SC) has found, based on the evidence collected so far, that Rabi engaged in financial transactions using cooperative funds before he became Managing Director of Gorkha Media.
The SC, acting as the final appellate authority for district and high court rulings, also ruled to keep him in custody for further investigation. It concluded that the available evidence points to his involvement in the offense. This decision has effectively ended any immediate hopes of his release.
Although his supporters expected the SC to grant him bail, the court ruled to hold him in custody during the pre-trial phase, citing that cooperative funds flowed into Gorkha Media and that Rabi played a key role within the organization.
Legal experts say Lamichhane must stay in custody until the court delivers a verdict on the registered cases. He can secure his release only if he proves during the hearings that he is not guilty. Several district courts have filed cases against him for cooperative fraud and organized crime.
Section 71(2) of the National Criminal Procedure Code, 2017, states: “…If there is a reasonable basis to believe that the accused in custody may not be guilty, the court may order their release from custody, regardless of the stage of the case proceedings.”
SC upholds Rabi Lamichhane's custody in cooperative fraud case
Beyond this legal provision, Lamichhane has little choice but to wait for the court's decision. While the law permits release during the hearing under certain conditions, a government attorney notes, "Since the SC—the final authority—has already ordered pretrial detention, he has no real ground for release until the court delivers its verdict."
The legal expert says Rabi Lamichhane must stay in custody until the court completes the witness examination and delivers a verdict. "He can only be released if he presents evidence during the trial that proves his innocence," the expert adds.
So far, the court has reviewed the available evidence and concluded that he played a responsible role in Gorkha Media's financial transactions. Despite this, Rabi has claimed he did not know the funds were transferred from the cooperative. He has repeatedly told the court that he had "no information" about the cooperative money entering the company while he worked at Gorkha Media. The court has rejected this claim, arguing that a person in his position should not be unaware of such transactions. In its brief order, the SC stated that it "could not trust the claim of having no knowledge."
Evidence shows Rabi, as Executive Director, attended several board meetings. The board decided to open a joint bank account operated by the signature of either Gitendra Babu (GB) Rai, Chhabilal Joshi, or Rabi Lamichhane. Records confirm that the cooperative deposited funds multiple times into the company's account, which was opened following that board decision.
The SC found that Rabi Lamichhane engaged in financial transactions involving cooperative funds even before he became Managing Director.
Records show that Gorkha Media holds shares worth Rs 180 million. In his statement, Rabi claimed he received 15 percent of the company's shares free of cost under the terms of the agreement. However, the Memorandum of Agreement (MoA) signed on Bhadra 10, 2077 BS (August 26, 2020) stated that the company would grant him the 15 percent share without payment.
Despite this, he submitted an investment source form to the official authority claiming he invested Rs 180 million in shares using "income from other businesses, loans, and ancestral property." Authorities flagged a contradiction between his statement and the submitted form. The SC also noted that he failed to support his claims with credible evidence. The order stated, "He appears to have taken a loan from the cooperative to purchase those shares."
Rabi Lamichhane told the SC that he separated from the company on Asar 1, 2079 BS (June 15, 2022). However, the court found that he continued to act as an account operator because he signed checks on various dates even after that day.
Former Deputy Inspector General (DIG) of Nepal Police, Chhabilal Joshi, also founded Gorkha Media. He stayed involved with the company from its inception until Ashoj 22, 2078 BS (October 8, 2021). During that time, he helped bring funds from the cooperative. The SC concluded that he actively participated in the financial transactions as well. Toward the end of its order, the SC said, "Additional evidence later confirmed the involvement of Rabi Lamichhane and Chhabilal Joshi. The court issued an order on Chaitra 12, 2081 BS (March 25, 2025) to keep them in custody for pretrial proceedings and continue the legal process accordingly."
In the same case, on January 26, Judge Prahlad Kumar Yogi and the Rupandehi District Court bench ordered Lamichhane's release on Rs 10 million bail in the Supreme Cooperative fraud case in Butwal. Lamichhane then filed a petition in the Butwal High Court, claiming the bail amount was too high and that bail was unnecessary.
The government prosecutor also filed a petition demanding that the court cancel the bail order and keep Lamichhane in custody. In response, Judges Ramesh Dhakal and Swikriti Parajuli of the Butwal bench of the High Court in Tulsipur annulled the district court's bail order and ordered Lamichhane's detention for pretrial custody.
On April 4, the same day the court issued the order, authorities arrested Lamichhane in Kathmandu and transferred him to Bhairahawa. He is currently held at Bhairahawa prison.
