The District Police Office in Kaski obtained court permission to investigate former Deputy Inspector General (DIG) Chhabilal Joshi under fraud and organised crime charges.

Joshi, arrested in connection with the embezzlement of the cooperative funds, was taken to Kaski on Sunday evening in connection with the misappropriation of savings from Pokhara-based Suryadarshan Saving and Cooperative Limited immediately after arresting him from Shankhamul in Kathmandu. He was produced before the court on Monday.

The police sought permission to hold Joshi in custody to investigate allegations that he systematically defrauded the cooperative, invoking charges under the Cooperative Act, 2017, and the Prevention of Organised Crime Act, 2007.

Following arguments from both the government and Joshi’s legal representatives, the bench of Judge Chandrakant Sharma granted permission to the police to investigate under the charges of organised crime and fraud.

The court permitted the five-day remand for the investigation.

The parliamentary special panel, formed to investigate crisis-ridden cooperatives, has recommended in its report that the government initiate legal action against Joshi, one of the founders of the Gorkha Media Network, along with the company’s chair, Gitendra Babu (GB) Rai, then managing director Rabi Lamichhane, and board member Kumar Ramtel.

Joshi, Lamichhane, Rai and Ramtel are accused of collecting millions of rupees from several cooperatives to run the Gorkha Media Network, where they had allegedly embezzled the money.

On Saturday, as recommended by the parliamentary probe panel, Minister of Home Affairs Ramesh Lekhak directed the Nepal Police to take necessary action based on the probe panel’s recommendation. A member of the home minister’s secretariat confirmed this directive while talking to the Post.

The probe panel has recommended prosecuting the four, and the International Criminal Police Organisation (INTERPOL) has issued a diffusion notice for Rai, who is on the run.

Ramtel is already in judicial custody in Kaski for misusing cooperative funds and now Joshi has been arrested. The police are now considering prosecuting Lamichhane.

Sensing possible arrest, Lamichhane on Sunday requested his party members and supporters to stay alert and on standby saying that the government may do anything to him and his party.

He made the request while addressing his supporters gathered at the party’s headquarters at Balaju, Kathmandu on Sunday evening after unsubstantiated reports stated that the government was preparing to arrest him.

“I don't trust this government. It can do anything. So I earnestly request you all to stay alert and on standby,” he said addressing the supporters.