Finally, police today evening arrested former deputy prime minister and Rastriya Swatantra Party (RSP) chair Rabi Lamichhane, who is also a former US citizen, in connection with an investigation into cooperative fraud.
A Central Investigation Bureau (CBI) team arrested Lamichhane from his party’s head office in Banasthali, Kathmandu, where Lamichhane had called his party cadres to resist his protest. However, due to pressure from various quarters, the RSP party cadres could not become violent like last time.
Earlier too, when Lamichhane’s business partner Chhabi Joshi was arrested, he had called his party cadres in the party headquarters, and asked to shield him.
Lamichhane is being taken to Pokhara to face trial as the case has been filed in Kaski district police. The police team led by Superintendent of Police (SP) Hobindra Bogati is taking Lamichhane to Pokhara via road.
After the arrest warrant was issued in his name, RSP chair Lamichhane asked his cadres to come to party headquarters in Banasthali and protest his arrest. Lamichhane also posted a video on social media, where he blamed the government for his arrest.
Criticising the government for its alleged hypocrisy, and stating corrupt leaders are protected while ordinary citizens, like himself, face unfair charges, he tried to come clean on cooperatives fraud.
“The government has died, and we are in mourning,” he said, adding, “Wristwatch worth millions is in your hand, while I get handcuffs in my hand.”
Blaming the government in punishing the corrupt, Lamichhane accused of using state power to protect its leaders and failed to hold corrupt figures accountable. However, his claim that the other party leaders are corrupt and fraud, doesnot give him amnesty to do fraud to the millions people.
“Now, we will lead the voice of cooperative victims,” he claimed, blaming that the government actions will lead the country to the ruins.
“To my RSP family, hold your heads high. Your chairperson has not defrauded anyone,” he claimed in front of his supporters.
Earlier in the afternoon, Kaski District Court allowed the police to arrest formerLamichhane. The bench also allowed the police to arrest 13 others—Bishal Tamang, Navin Achami, Rabina Rimal, Ashraf Ali Siddiqui, Dipak Lama, Ananta Babu Rai, Ram Bahadur Khanal, Devendra Babu Rai, Bigyan Rai, Om Prakash Gurung, Bir Bahadur Ranabhat, Deepa Neupane, and Kalpana Kumari Shrestha–in connection with the same charges.
Earlier, the District Police Office Kaski sent a letter to the CIB requesting to arrest Lamichhane for investigation into cooperative fraud, organised crime and forgery. The letter was addressed to the CIB, the Kathmandu Valley Crime Investigation Office, and the Kathmandu District Police Range.
However, acting like they are above the law, Lamichhane, his party cadres and supporters chanted slogans against the police and the government. They also claimed Lamichhane’s innocence and accused the ruling party of protecting the real culprits of the cooperative fraud. Taking to the streets, they also tried to obstruct legal proceedings.
In May, a parliamentary special probe committee was formed after pressure from the then opposition Nepali Congress (NC) to investigate crisis-ridden cooperatives including the Lamichhane linked alleged Surya Darshan Cooperatives. The probe committee’s report concluded that Lamichhane was involved in misusing millions of rupees funnelled into Gorkha Media Network from various cooperatives, when he was the managing director of the Galaxy 4K Television, before joining politics. The report also recommended police to probe and take action against Lamichhane and several others in cooperative fraud, according to the law.
The report states that over Rs 63 billion was embezzled by cooperative owners from various crisis-ridden cooperatives across the country. Recommending to prosecute four individuals, including Lamichhane, the then managing director of Gorkha Media Network; chairman Gitendra Babu (GB) Rai; a board member Kumar Ramtel; and initial founder of the company Chhabi Lal Joshi, the report concludes that Lamichhane had signed the cheques worth Rs 650 million, which was funnelled from the Cooperatives.
Joshi, a former deputy inspector general (DIG), was arrested in Kathmandu a month ago. He is still in the police custody. Ramtel is also behind the bar since almost two months, whereas GB Rai is at large. However, Lamichhane is still free claiming that he is innocent and didnot know the source of income of the Gorkha Media Network (Galaxy 4K TV), where he was not only Managing director but also 15 percent stake holder.
Led by CPN-UML member of parliament Surya Thapa, the parliamentary special probe committee was formed on May 28 with the seven members due to the pressure from the then main opposition Nepali Congress, which had obstructed parliamentary proceedings until the committee was formed.
The RSP with its populist approach has become the fourth largest party in the parliament, and been in the power twice, though it has been blaming the old parties and their leaders corrupt. Both the times, Lamichhane led his party, in the capacity of deputy prime minister and home minister, and tried to stall investigation against him.
In the power sharing pact, his another criminal case of duel passport has been covered by the then prime minister Puspa Kamal Dahal ‘Prachanda’. However, the day, dual passport case reopens, Lamichhane will again be behind the bar, as there are some 5 people of same case, who are currently behind the bar.

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