The Kaski District Police Office, which is investigating Rastriya Swatantra Party (RSP) Chairman Rabi Lamichhane, former deputy inspector general (DIG) of Nepal Police Chhabilal Joshi, and Lila Pachhai for cooperative fraud, has now secured court’s permission to investigate them on money laundering charges as well.

The Kaski District Court on Thursday granted permission to keep Lamichhane, who is also a former deputy prime minister and home minister, as well as Joshi in custody for seven more days to investigate charges of cooperative fraud, organised crime and money laundering charges.

The law allows a custody of up to 90 days for investigation into money laundering charges.

Earlier, on October 18, the Central Investigation Bureau (CIB) of Nepal Police apprehended Lamichhane from Kathmandu after the Kaski District Court issued an arrest warrant against him.

Judge Chandrakanta Paudel’s bench on Thursday authorised extension of their detention, including that of Pachhai, who was arrested in connection with the same case. The District Police Office and Office of the District’s Attorney submitted separate reports to the court on Thursday seeking a 25-day custody remand for the investigation into cooperative fraud, organised crime and money laundering charges.

Deputy Superintendent of Police Basanta Kumar Sharma, who is also the spokesperson of the District Police Office in Kaski, said that police would investigate Lamichhane, Joshi and Pachhai on money laundering charges. “Investigation on three different charges will be carried out against them,” said Sharma.

On Thursday, district attorney Kamala Kafle, along with assistant district attorneys Shantidevi Sharma and Bipinraj Tiwari, argued that an additional 25-day custody period was necessary to complete the investigation. Lawyers Yubaraj Parajuli and Bed Bahadur Bista supported this request, stating that crucial documents from various government offices, institutions, and banks were yet to be obtained, and further interrogation remains pending.

Senior advocates Narayan Ghimire and Hari Prasad Subedi, representing Lamichhane, advocated against the extension of the detention, as did lawmaker and advocate Sobita Gautam, and other advocates Narayan Kandel, Padmaraj Sharma, and Madhukumar Chaulagain. Advocate Jagannath Dhakal defended Joshi during the hearing.

During the court session, Lamichhane, initially agitated, claimed that he had repeatedly been subjected to examinations and that the charges against him were politically motivated. The judge urged him to be calm and express his views. Lamichhane later regained his composure and expressed faith in the judicial process.

Police arrested him on the recommendations of the parliamentary special probe committee formed in May to investigate crisis-ridden cooperatives. The probe committee had concluded that Lamichhane was involved in misusing millions of rupees funnelled into Gorkha Media Network from various cooperatives when he was the managing director of the now defunct media company that ran Galaxy 4K Television. This happened before he joined politics in June 2022.

After receiving the report, Speaker Devraj Ghimire of the House of Representatives a month ago directed the government to implement the report’s recommendations and a Cabinet meeting instructed the state agencies concerned to take necessary action as per the probe committee’s recommendations.

Meanwhile, RSP leaders and activists intensified their protest after the court extended Lamichhane’s custody remand for seven more days. The protesters defied prohibitory orders imposed by the Kaski administration.

The protesters and security personnel clashed after the former entered the prohibited area. The RSP supporters who staged demonstrations at Wai Chowk entered the prohibitory area and marched towards Sahid Chowk through Rastrabank Chowk.

The demonstrators chanted slogans against the KP Sharma Oli-led government accusing it of taking political revenge against the RSP Chairman Lamichhane. They claimed that the government misused state powers to frame Lamichhane on false charges.

Rupandehi Court also permits detaining Lamichhane, Joshi on organised crime charges

Rupandehi District Court on Thursday granted permission to detain Lamichhane, GB Rai and Joshi for investigation on cooperative fraud and organised crime charges. The court also granted permission to police to arrest nine others who were allegedly involved in embezzling funds of Butwal-based Supreme Saving and Credit Cooperative.

The single bench of judge Shyam Prasad Shrestha issued the permission to arrest them. Lamichhane and Joshi are in police custody in Kaski while Rai is on the run. Joshi was brought to Rupandehi a few days ago, where they spent 13 hours recording his statement before he was sent back to Kaski.

According to a police source, preparations are on to bring Lamichhane to Rupandehi on Friday for testimony.

A total of Rs780 million deposited in Supreme Saving and Credit Cooperative by 10,391 depositors was embezzled, according to reports.

An investigation revealed that Rs142.9 million from Supreme’ funds was transferred to the Gorkha Media Network's bank account.

Police earlier filed a case against 28 people including Rai, Joshi and Om Prakash Gurung. The Rupandehi District Court sent Gurung, the chairman of the Butwal-based Supreme Saving and Credit Co-operative, to jail for judicial custody on charges of misusing cooperative funds.

Gurung, who has been accused of embezzling Rs1.078 billion of savings deposited by over 10,000 members at the Rai-led cooperative, was sent to jail by judge Shriprakash Upreti. However, the court released six others, including Dipesh Pun, the son of former Vice President Nanda Bahadur Pun, who were also accused of embezzling cooperatives cash.