KATHMANDU: Rabi Lamichhane, Chairman of the Rastriya Swatantra Party (RSP) and former Home Minister, has been released on bail of Rs6.5 million after spending 84 days in custody in Kaski District. The release was granted under the condition that he appear in person for proceedings related to other ongoing cases against him in different district courts.
The Kaski District Court, under Judge Neetij Rai, issued the bail order, allowing Lamichhane to stay free as long as he complies with judicial processes.
Following his release, Lamichhane made a brief remark outside the court, stating that he would address the public when the right time arrived.
RSP lawmaker Sobita Gautam confirmed that Lamichhane’s release came after meeting the bail conditions. Prior to his release, Lamichhane underwent a medical examination at Gandaki Hospital in Pokhara.
Lamichhane and former Deputy Inspector General (DIG) Chhabilal Joshi were both released after Prabhu Bank officials provided surety bonds on their behalf. The Kaski police handed Lamichhane over to RSP lawmaker DP Aryal, in the presence of Lamichhane’s wife, Nikita Paudel.
Lamichhane is now scheduled to appear before the Kathmandu Police Range and later be taken to the Kathmandu District Court, where he faces charges of embezzling deposits from the Swarnalaxmi Cooperative. A similar procedure was followed in Joshi’s case, and both men have been asked to report to the Kathmandu police by Friday.
Lamichhane’s release comes after a remand hearing related to allegations of misappropriating Rs1.51 billion from the Suryadarshan Savings and Credit Cooperative in Pokhara. The court cited evidence, including 814 cheques signed by Lamichhane as managing director of Gorkha Media Network, as well as funds transferred from the cooperative to his personal bank account, which were later invested in the company.
Although Lamichhane denied his involvement, the court found the evidence substantial enough to grant bail. Judge Rai noted that while the evidence does not conclusively prove his innocence, it justifies further investigation. He was granted bail under the condition that he post Rs6.5 million. If he fails to do so, he will remain in judicial custody at Kaski prison.
Ongoing Investigations in Multiple Districts
Lamichhane’s release from Kaski District Court does not ensure his freedom. He faces investigations in Kathmandu, Rupandehi, Chitwan, and Parsa, where he will undergo similar hearings. Senior advocate Dinesh Tripathi emphasized that the Kaski court’s decision is not binding on other district courts. “The Kaski ruling cannot set a precedent for other courts,” he explained. “Each district court will independently assess whether further judicial custody is necessary.”
As Lamichhane has not been acquitted, he remains suspended as a lawmaker.
Tripathi pointed out that the Kaski court’s decision to impose a significant bail amount suggests that the case against Lamichhane is serious. “If the case were weak, he would have been granted bail with less stringent conditions,” he noted.
In Kathmandu, Lamichhane, along with 38 other individuals, is accused of embezzling Rs1.199 billion from the Swarnalaxmi Multipurpose Cooperative. Investigations suggest widespread misuse of cooperative funds by Lamichhane and other members of Gorkha Media Network.
Lamichhane, arrested on October 18 by the Central Investigation Bureau (CIB) at the RSP central office in Kathmandu, is also accused of diverting Rs30 million from Gorkha Media into personal accounts. The Kathmandu District Court has issued arrest warrants related to these allegations.
Bail Orders for Other Defendants
In addition to Lamichhane, former DIG Joshi and several others face charges of cooperative fraud, organized crime, and money laundering. Joshi was granted bail of Rs8.8 million, and other defendants, including Leela Pachhai, Ram Bahadur Khanal, Meena Gurung, Arati Gurung, and Krishna Gurung, were released after posting varying bail amounts. Pachhai, however, was sent to judicial custody after failing to meet the bail requirements.

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