The Butwal bench of the Tulsipur High Court on Thursday orders authorities to submit the initial case files related to the cooperative fraud and organised crime case against Rastriya Swatantra Party (RSP) chair Rabi Lamichhane and former Gorkha Media Network director Chhabi Lal Joshi.

The division bench of judges Basudev Acharya and Om Prasad Aryal issued the order after hearings from both sides. Earlier, the hearing scheduled for October 30 was postponed following a petition from Joshi’s legal team.

Court information officer Ram Bahadur Kunwar said the bench ordered submission of the original files after Lamichhane requested to be released from judicial custody upon repaying the alleged misappropriated amount. The court also directed submission of Joshi’s file for joint review, as both cases are of similar nature.

During Thursday’s hearing, advocates Mahendra Pandey and Baburam Pandey argued on behalf of Lamichhane, while advocate Apurva Khatri represented Joshi.

Lamichhane and Joshi, both accused of embezzling funds from the Butwal-based Supreme Savings and Credit Cooperative, have submitted bank guarantees equivalent to their alleged liability—Rs27.4 million each.

The High Court had earlier sought clarification reports in Lamichhane’s case after the Rupandehi District Court rejected his release on August 11, despite his submission of the same amount as security.

Lamichhane, who was earlier held in Bhairahawa prison, has been transferred to Nakkhu prison in Lalitpur, while Joshi remains in Bhairahawa.

An investigation has determined a total loss of Rs109.36 million in the cooperative fraud case. Lamichhane has claimed responsibility for one-fourth of the total, for which he has submitted the equivalent bank guarantee. Both accused, however, remain in custody as the exact division of liability has yet to be verified.