Supreme Court Denies Release: Rabi Lamichhane Remains in Jail

Kathmandu: The Supreme Court of Nepal on Friday upheld the decision of the Tulsipur High Court to keep Rastriya Swatantra Party (RSP) chief Rabi Lamichhane in judicial custody in connection with a high-profile cooperative fraud and organized crime case. A division bench of Justices Nahakul Subedi and Balkrishna Dhakal rejected a habeas corpus petition filed by Lamichhane’s wife, Nikita Paudel, demanding his immediate release.

In its ruling, the court stated that based on the evidence currently available, it could not reasonably be believed that Lamichhane and the other accused were innocent of the alleged offenses. Therefore, the Supreme Court found no error in the Tulsipur High Court’s April 4 order to keep Lamichhane and former Deputy Inspector General (DIG) Chhabilal Joshi in custody pending trial.

This verdict effectively nullifies a prior decision by the Rupandehi District Court, which had released Lamichhane on bail after he posted Rs10 million in January. Following the Supreme Court’s ruling, Lamichhane will remain in custody until the Rupandehi District Court reaches a verdict in the Supreme Cooperative fraud case. His release will depend not only on this court’s acquittal but also on his clearance of other pending charges in multiple districts.

Lamichhane’s legal troubles began when charges were filed against him under the Money Laundering Prevention Act in December 2024. Consequently, he has been suspended as a lawmaker, and Dol Prasad Aryal currently leads the RSP as acting president while Lamichhane remains in Rupandehi jail.

The cooperative fraud case centers on allegations that Lamichhane and Joshi embezzled funds totaling millions of rupees, including Rs20 million allegedly transferred to Lamichhane’s personal account and Rs25 million to Joshi’s. An audit revealed that nearly Rs110 million was deposited into various accounts of the Gorkha Media Network, the media company jointly operated by Lamichhane, Joshi, and GB Rai—who is currently evading arrest. Notably, Lamichhane exited the media business in June 2022 to pursue his political career with the RSP.

The Supreme Cooperative case, which implicates 28 defendants, including Rai, was registered in April last year, citing damages of Rs860 million. Among the accused, 17 individuals are facing additional charges. The government’s legal representatives had appealed the earlier bail order, arguing that the seriousness of the offenses and the weight of evidence justified keeping Lamichhane in custody.

Besides the Rupandehi case, Lamichhane has secured bail in several other cooperative fraud cases, including Rs6.5 million in Kaski, Rs6 million in Kathmandu, and Rs5.4 million in Chitwan. However, these ongoing investigations and court battles continue to overshadow his political ambitions.

The Supreme Court’s decision marks a significant development in Nepal’s fight against financial fraud and political corruption, underscoring the judiciary’s determination to hold influential figures accountable. As the trial proceeds, the nation awaits the Rupandehi District Court’s verdict, which will be pivotal for Lamichhane’s future and the credibility of the Rastriya Swatantra Party.