The Butwal bench of the Tulsipur High Court on Thursday ordered the release of Rastriya Swatantra Party (RSP) chairman and former managing director of Gorkha Media Network, Rabi Lamichhane, on bail in connection with the Supreme Cooperative fraud and organised crime case.

A division bench comprising Chief Judge Basudev Acharya and Judge Tej Narayan Paudel quashed the Rupandehi District Court’s August 11 order and directed Lamichhane’s release after furnishing bank guarantees equivalent to the alleged loss amount.

However, Lamichhane could not be released on Thursday as he is required to personally appear at the Rupandehi District Court to complete legal formalities. He is scheduled to be released on Friday.

Thursday's High Court order noted that the court accepted the Rs10 million bail amount earlier deposited by Lamichhane and approved an additional bank guarantee of Rs27.48 million. The court also directed that Lamichhane submit a written undertaking agreeing to bear any additional liability determined by the final verdict and to inform the court in advance of any foreign travel.

The original copy of the high court’s order will be presented at the Rupandehi District Court in Bhairahawa on Friday. The district court will then process the bank guarantees and complete the required documentation in Lamichhane’s presence before ordering his release on bail.

Abinash Acharya, Lamichhane’s personal secretary, said that the release process had already begun on Thursday and would be completed on Friday in coordination with the court and security agencies.

Lamichhane was arrested under a Tulsipur High Court Butwal bench order on April 4 and was initially held at Bhairahawa prison before being transferred to Nakhkhu Prison in Lalitpur, where he is currently lodged.

Meanwhile, the process to refile a bail application for Chhabilal Joshi, who remains in custody at Bhairahawa prison in the same case, is also set to begin on Friday, his family said.