The District Government Attorney’s Office in Parsa has filed a charge-sheet at the Parsa District Court against Rastriya Swatantra Party (RSP) chair Rabi Lamichhane and 28 others in connection with a large-scale cooperative fraud and organised crime case.

The case relates to the alleged misappropriation of Rs115.6 million from Sano Paila Savings and Credit Cooperative, headquartered in Birgunj-6, Adarshnagar. The charge sheet, filed on May 13, seeks recovery of the embezzled amount and imprisonment of six to eight years for Lamichhane under Section 124 of the Cooperatives Act 2017. Additional punishment has been sought under the Organised Crime Control Act 2013, which allows for an extra 50 percent jail term on top of the standard sentence.

The investigation into Sano Paila Cooperative began following multiple complaints from depositors in 2023 and early 2025. The police report submitted to the attorney’s office indicates that Lamichhane, along with co-accused Chhabilal Joshi and others, played a central role in the fraudulent redirection of cooperative funds.

According to the charge-sheet, Rs100.7 million was transferred from Sano Paila to Gorkha Media Network, where Lamichhane served as managing director. An additional Rs9.6 million went to Nature Herbs Industries Pvt Ltd. However, the largest sum—over Rs1.15 billion—was allegedly funnelled to the Swarnalaxmi Multipurpose Cooperative based in Kathmandu.

In total, police confirmed that Sano Paila Cooperative embezzled Rs2.301 billion from 5,873 depositors. Several formal complaints were filed in 2023 and 2025, including those from Najanin Begum and 51 others in August 2023, and 207 depositors led by Bishal Sahani in September 2023. Another group of 179 depositors lodged complaints in February 2025.

Initially investigated solely for financial irregularities, the case later expanded to include organised crime and money laundering, following a report by a parliamentary probe committee. Police conducted a detailed audit, collecting documents including transaction records, vouchers, software data from GCS, and the cooperative’s daybooks.

Lamichhane is currently in pre-trial detention at Bhairahawa prison in connection with a separate cooperative fraud case involving Butwal-based Supreme Cooperative. He was remanded by the Butwal bench of the High Court Tulsipur on April 4, 2025, overturning an earlier release on Rs10 million bail granted by Rupandehi District Court in January.

Lamichhane’s political and legal troubles continue to mount, as multiple cooperatives across the country—including those in Pokhara, Butwal, Chitwan, Kathmandu, and Parsa—have been linked to the diversion of funds to Gorkha Media Network, which formerly operated Galaxy 4K Television. Lamichhane left the media company in mid-2022 to pursue a political career.

Further investigations into cooperative fraud and organised financial crime are ongoing.