Rabi Lamichhane, chairman of the Rastriya Swatantra Party (RSP) and former home minister, has been released on a bail of Rs6.5 million after spending 84 days in custody in Kaski District. The release was granted on the condition that he appears in person for proceedings related to cases filed against him in other district courts.

The Kaski District Court, presided over by Judge Neetij Rai, ordered Lamichhane’s release following a decision that allowed him to stay out on bail under the condition that he complies with judicial processes.

Giving a brief remark outside the court, Lamichhane said he will speak publicly when the right time comes.

RSP lawmaker Sobita Gautam said Lamichhane was released after meeting the bail requirement.

Before his release, Lamichhane underwent a medical examination at Gandaki Hospital in Pokhara.

The court released Lamichhane and former Deputy Inspector General (DIG) Chhabilal Joshi after Prabhu Bank officials provided surety bonds on their behalf.

After this, the Kaski police handed over Lamichhane to RSP lawmaker and leader DP Aryal in the presence of Lamichhane’s wife Nikita Paudel.

Now, he will appear before the Kathmandu Police Range. Then, the police will take him to the Kathmandu District Court, where a case has been filed against him on charges of embezzling deposits of Kathmandu-based Swarnalaxmi Cooperative. A similar process was followed in Joshi’s case. They have been asked to present themselves to the Kathmandu police by Friday.

Lamichhane’s release follows a remand hearing over allegations he misappropriated Rs1.51 billion from the Pokhara-based Suryadarshan Savings and Credit Cooperative. The hearing, conducted by a single bench of Judge Rai, concluded after arguments by Assistant District Attorney Govindaraj Gauli and District Attorney Kamala Kafle.

Evidence linking Lamichhane to financial mismanagement

The court’s decision cited evidence from 814 cheques signed by Lamichhane in his capacity as the managing director of Gorkha Media Network. These cheques were reportedly signed both during his tenure and after he left the company.

Additionally, the court order noted that funds from Suryadarshan Cooperative had been transferred to Lamichhane’s personal bank account and subsequently invested in Gorkha Media Network. Despite Lamichhane’s denial of his involvement, the court found these transactions significant enough to demand bail.

Judge Rai concluded that while the evidence does not conclusively prove his innocence, it warrants further investigation. The court ordered Lamichhane to post a bail of Rs65 million, failing which he would be remanded to judicial custody in Kaski prison.

More cases against Lamichhane

While Lamichhane got bail from Kaski district court that may not ensure his freedom. In addition to Kaski, he is being investigated in four other districts—Kathmandu, Rupandehi, Chitwan and Parsa.

“He will have to face similar hearings in all these districts,” said senior advocate Dinesh Tripathi.

Tripathi says the Kaski court’s ruling cannot be the precedent for other district courts. “First, it is not the final verdict, and second, ruling from one district court cannot be precedent for other district courts,” he said. “Other courts might still think that he needs to be investigated in judicial custody.”

As he has not been acquitted, he will remain suspended as a lawmaker.

Tripathi says the Kaski court, by imposing a hefty bail amount, has hinted that the case against Lamichhane is strong. In the ruling, the single bench has said Lamichhane cannot be declared not guilty. "He would have been released on general dates if the case against him was weak," said Tripathi.

In the case sub judice at the Kathmandu District Court, Lamichhane and 38 others are accused of embezzling Rs1.199 billion from the Swarnalaxmi Multipurpose Cooperative. Investigations allege systematic misuse of cooperative funds by Lamichhane and other board members of Gorkha Media Network.

Arrested on October 18 by the Central Investigation Bureau (CIB) from the RSP central office in Kathmandu, Lamichhane is alleged to have diverted Rs30 million from Gorkha Media into personal accounts. The Kathmandu District Court has also issued arrest warrants against Lamichhane in connection with these allegations.

Bails for other defendants

Lamichhane, alongside former DIG Joshi and other defendants, is charged with cooperative fraud, organised crime, and money laundering. In addition to Lamichhane’s Rs6.5 million bail, the court ordered Joshi’s release on Rs8.8 million bail and set varying amounts for other defendants.

Among the accused, Leela Pachhai is required to submit Rs3.7 million, Ram Bahadur Khanal Rs1.5 million, and Meena Gurung and Arati Gurung Rs500,000 each. Likewise, Krishna Gurung was ordered to pay Rs100,000 for bail. Khanal, Meena, Arati and Krishna were released after posting their respective bails. But Pachhai was sent to judicial custody after she failed to produce the bail amount.