The Butwal bench of the Tulsipur High Court on Thursday ordered the release of Rastriya Swatantra Party (RSP) chairman 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 issued the order, directing Lamichhane’s release upon depositing bail equivalent to the alleged loss amounting to Rs27.48 million. Following the high court’s order to seek bail, Lamichhane will be freed after furnishing the required amount.

The court noted that Lamichhane had submitted an application expressing readiness to deposit bail equivalent to his alleged liability. On that basis, the bench quashed the earlier order that had sent him to judicial custody for trial and ordered his release on bail instead.

Lamichhane had been in judicial custody over allegations of misappropriation of funds belonging to the Butwal-based Supreme Cooperative. The hearing held on Thursday marked the seventh consecutive hearing since October 30 in the case involving Lamichhane and another defendant, Chhabilal Joshi.

During the proceedings, hearings were postponed twice at the request of Lamichhane’s side and once at the request of Joshi’s side, while the prosecution did not seek any adjournment. Under the law, both the prosecution and the defence are allowed to seek adjournments up to two times each.

With the order, Lamichhane, who is currently held at Nakkhu Prison, will be released on bail pending further proceedings in the case.