Nepali Ex-Minister Faces Extended Judicial Custody in Massive Cooperative Fraud Case

In a significant legal development, a district court in Nepal has ordered former Deputy Prime Minister and Home Minister Rabi Lamichhane to remain in judicial custody. The Rupandehi District Court's decision, announced late Monday, rejected Lamichhane's application for release concerning a high-stakes cooperative fraud case. Lamichhane, also the founder of the Rastriya Swatantra Party (RSP), has been accused of embezzling substantial funds.

A single bench led by Judge Narayan Prasad Sapkota upheld the judiciary's stance, highlighting the unresolved nature of the financial discrepancies tied to Lamichhane's case. Despite the ex-minister's plea, which included a bank guarantee of Nepali Rupees 27.4 million, the court found insufficient grounds to grant his release. Earlier, a bench with Judge Bashisht Kumar Ghimire had set a significantly lower bail at NRs 10 million for charges involving organized crime and fraud.

As Lamichhane welcomes this judicial decision, he remains steadfast in challenging it, seeking a regular court hearing. With allegations of diverting over NRs 109 million from the Butwal-based Supreme Cooperative to Gorkha Media Network Pvt Ltd, the complexities of this case continue to unfold. A parliamentary report has implicated Lamichhane in embezzlement activities, further intensifying the scrutiny he faces, both legally and politically.

(With inputs from agencies.)