The Patan High Court on Thursday rejected a petition filed by the government attorney demanding that Rastriya Swatantra Party (RSP) chair Rabi Lamichhane be remanded to custody in the Swarnalaxmi Savings and Credit Cooperative case.

Lamichhane had earlier been released by the Kathmandu District Court on January 15, 2025, after furnishing bail of Rs6 million in connection with the alleged misappropriation of funds at the Kathmandu-based cooperative.

Challenging the district court’s ruling, the government attorney had filed a petition at the Patan High Court seeking Lamichhane’s detention. A division bench of Judges Khadananda Tiwari and Dipak Kumar Kharel, however, upheld the district court’s decision and confirmed Lamichhane’s release on bail.

Thursday’s ruling adds to a series of recent court developments involving Lamichhane. In a similar case, the Butwal bench of the Tulsipur High Court on December 18 had also ordered Lamichhane’s release on bail in the Supreme Cooperative fraud and organised crime case, directing him to deposit Rs27.48 million—the amount equivalent to the alleged loss—before release.