The Kaski District Police Office submitted a report to the Kaski District Attorney’s Office on Monday demanding a case be filed against 51 people including Rastriya Swatantra Party (RSP) President Rabi Lamichhane on the charge of embezzling cooperative funds.

The Kaski District Police Office submitted a 650-page report containing the findings of its two-month-long investigation to the District Attorney’s Office.

Kaski Police Spokesperson Deputy Superintendent of Police (DSP) Basanta Kumar Sharma confirmed that the report was submitted to the attorney's office on Monday.

In the chargesheet, the police have determined that as much as Rs1.514 billion needs to be recovered from the accused. The police have proposed a case be filed against them on organised crime, cooperative frauds and money laundering charges. According to DSP Sharma, 37 of the 51 defendants are on the run.

The police have advised the government attorney to file a supplementary chargesheet in court against 51 people, including former home minister Lamichhane, on the charge of embezzling funds from the Karki-based Suryadarshan Cooperative. The police report has accused Lamichhane and his business partners GB Rai, Chhabi Lal Banjade Joshi, and Kumar Ramtel of an organised crime as well.

Lamichhane was arrested on November 18 while Joshi was detained on September 22 from Kathmandu. Since then, both of them have been in the custody of Kaski Police.

“Of the 65 people, police have suggested filing a supplementary chargesheet in court against 51 people, including Lamichhane,” DSP Sharma said. “The district police are yet to ascertain the detailed address of 14 people.”

In the case of Lamichhane, the police have suggested that the former home minister be charged with money laundering for allegedly making suspicious and illegal transactions worth over Rs210 million.

After studying the police report, the government prosecutors will file a chargesheet in court.

Legal provisions allow police to take suspects in detention for 25 days for investigation in a cooperative fraud case, 60 days for organised crime and 90 days under the Prevention of Money Laundering Act.

Former DIG Chhabilal Joshi was arrested in Kathmandu on September 22 and taken to Kaski for investigation in the cooperative fraud case.

Since the investigation of Lamichhane and Joshi are of the same nature, they will complete 90 days in custody on December 20 with effect from the day of Joshi's arrest. Hence, it is mandatory for the prosecutors to file a case by December 20.

Lamichhane and Joshi, who were partners in Gorkha Media Network that ran now-defunct Galaxy 4k TV, were also taken to Rupandehi, Kathmandu, Chitwan, and Parsa districts for investigation into their alleged involvement in the embezzlement of deposits of various cooperatives based in those districts.

Lamichhane, Joshi, and GB Rai, who was chairman of the media company, are accused of diverting around Rs690 million rupees from various cooperatives to the media company. They had allegedly embezzled deposits from Suryadarshan Cooperative of Kaski, Supreme Cooperative of Butwal, Swarnalaxmi Cooperative of Kathmandu, Sahara Cooperative of Bharatpur, and Sanopaila Cooperative of Parsa.

The police concluded in their report that they had committed fraud in an organised way by illegally mobilising around Rs680 million from these five cooperatives to Gorkha Media Network.

The DistrictOfficials at the Kaski Attorney's Office said that they are reviewing the police’s report.

Kaski District Attorney Kamala Kafle said two additional charge sheets may be filed in the case.

“Since more depositors of the cooperative have filed complaints, we will file additional charges against the defendants who have already been charged and file supplementary chargesheets against the newly arrested defendants,” Kafle said.

Kafle added that it would be impossible to file charges on Tuesday since they have limited time to review the police report submitted on Monday.

The latest extension for Lamichhane’s remand to custody expires on Monday. The police are preparing to take Lamichhane to court on Tuesday to request an extension.

“The investigation report is still under review,” Kafle said. “It will take time to determine which charges will be applicable, so we will request an extension again on Tuesday.”