The police are preparing to bring former deputy prime minister and home minister Rabi Lamichhane to Butwal for an investigation into allegations of cooperative fraud and organised crime.

Currently in the custody of the Kaski police for similar charges, Lamichhane, who is also the chairman of the Rastriya Swatantra Party, has had his remand expired on October 30. However, he remains in custody due to the closure of courts during the Tihar holidays.

The Rupandehi police have confirmed their preparation to transport Lamichhane to Butwal. If the court denies an extension of his custody on Tuesday, they will proceed with the transfer the same day.

On October 24, the Rupandehi District Court permitted the arrest of Lamichhane and Chhabilal Joshi, vice-chair of Gorkha Media Network Pvt Ltd, along with 12 additional individuals for the investigation in connection with an organised crime case.

Judge Shyam Prasad Shrestha’s bench approved the investigation and arrest of Lamichhane, Joshi, and others in connection with cooperative fraud. Lamichhane and Joshi, currently in custody in Pokhara, are under scrutiny for their involvement in misappropriating funds from the Supreme Savings and Credit Cooperative in Butwal.

According to reports by the parliamentary special inquiry committee and the police, Rs19.6 million was transferred in the name of Rabi Lamichhane from the Supreme Cooperative, while Rs142.9 million was funnelled to Gorkha Media Network through various individuals. The committee led by lawmaker Surya Thapa revealed that the amount was unlawfully transferred from the cooperative to the accounts of the media company co-founded by Lamichhane and GB Rai, among others.

Superintendent of Police Ranjeet Singh Rathore, chief of the District Police Office, Rupandehi, said that a request had already been submitted to Kaski police a week ago to facilitate Lamichhane’s transfer for further investigation. “He is still under investigation, and we anticipate an extension will be granted as soon as the court reopens,” Rathore said. “We are prepared to bring him here after the Tihar festival.”

Former DIG Chhabilal Joshi Banjade, also under investigation, was previously brought to Butwal for interrogation before being returned to Kaski. Authorities are probing the illegal transfer of Rs25 million under Joshi’s name.

Of the Rs1.07 billion deposited by 10,391 account holders in Supreme Cooperative, Rs780 million has been estimated as misused. Following initial investigations, the Rupandehi police have already filed a case against 28 individuals, including the cooperative’s chairman, Om Prakash Gurung, who is currently in custody. Other key figures, such as Gitendra Babu (GB) Rai, Bhupendra Babu Rai, and manager Sagar KC, remain at large, while several others have been released on bail.