The Rupandehi District Court on Monday ordered Rastriya Swatantra Party (RSP) chair Rabi Lamichhane to remain in judicial custody, rejecting his application for release in connection with the Butwal-based Supreme Savings and Credit Cooperative fraud case.

A single bench of Judge Narayan Prasad Sapkota, following a hearing on Lamichhane’s petition seeking release upon submitting a bank guarantee equivalent to the amount attributed to him in the case, refused to let him out.

Lamichhane, who has been in Rupandehi prison since April 4, filed the petition on August 4. He also submitted bank security worth Rs27.4 million along with his application.

Earlier, the Butwal bench of the Tulsipur High Court on April 4 had overturned the District Court’s order to release him on bail. Advocates Narayan Kandel, Rajendra Thapa and Mahendra Pandey argued for his release under provisions of the National Criminal Procedure Act, while government attorneys opposed the move, citing the Supreme Court’s earlier decision to uphold his detention.

The cooperative fraud case alleges that Lamichhane and others transferred over Rs109 million from the Butwal-based Supreme Cooperative to Gorkha Media Network Pvt Ltd, misappropriating the funds.

Monday’s ruling followed a series of adjournments last week, with hearings postponed after Lamichhane’s lawyer cited illness.