District Attorney to file cases against Lamichhane and four others by Dec 20

Kathmandu, Dec. 14: Police have decided to file cases against former Deputy Prime Minister and Home Minister and Rastriya Swatantra Party (RSP) President Rabi Lamichhane on cooperative fraud, organised crime and money laundering.

Investigating multiple cases of cooperative fraud across five districts, the police will first submit a case related to the Surya Darshan Cooperative in Pokhara to the District Government Attorney’s Office in Kaski. 

After studying the investigation report, the District Government Attorney, Kaski, will prepare a chargesheet and file the case in the court. The police aim to file cases from all districts by December 20.

In Surya Darshan Cooperative fraud case, supplementary charges are being prepared against 40 individuals, five of whom are currently in custody in Kaski. Among the arrested, Chhabilal Joshi Banjade was the first to be detained on September 22, starting the 90-day deadline for filing the case in court, which ends on December 20. 

Rabi Lamichhane was arrested on October 18. Other arrestees include Leela Pachhaie, who had close financial ties with GB Rai and suspicious transactions, Chhabilal's bodyguard Ram Bahadur Khanal, and Krishna Gurung, a cooperative operator.

Cases had already been filed against 19 individuals, including GB Rai and Kumar Ramtel. Some of them remain at large, while others are in custody awaiting trial.

Four key masterminds on organised crime

The police have extended the investigation beyond cooperative fraud to file cases on organised crime charges. They have identified four main masterminds: GB Rai, Chhabilal Joshi Banjade, Kumar Ramtel, and Rabi Lamichhane himself behind the cooperative frauds.  According to Kaski Police, these four individuals embezzled Rs. 55.8 million through Gorkha Media in an organised manner, with each being responsible for Rs. 13.95 million.

GB Rai served as the chairman of Gorkha Media while Chhabilal Joshi Banjade was its vice-chairman. Rabi Lamichhane was initially a shareholder and managing director. Kumar Ramtel later joined as a director. Together, they embezzled Rs. 55.8 million from the Surya Darshan Cooperative. When including other cooperatives, the total embezzled money amounts to Rs. 670 million, with Rabi Lamichhane alone embezzling over Rs. 160 million. 

The police allege that Gorkha Media Network was established with the intention of siphoning funds from cooperatives.

Evidence from a computer server

On February 7, 2023, the police raided Chhabilal Banjade’s residence in Shankhamul, Kathmandu, seizing a server containing electronic records of the businesses of GB Rai’s group. The server revealed transactions and links involving Rabi Lamichhane, providing critical evidence.

The server also uncovered details about previously charged suspects, further clarifying their involvement and the nature of their crimes. The police consider the server records to be their strongest evidence. Additionally, loans, advances, checks issued in Rabi's name, and other corporate documents will be presented as evidence in cooperative fraud and organised crime cases.

The investigation report is in its final stage, with the police planning to submit it to the government attorney by next Friday or Sunday at the latest, according to a Kaski Police official.

Department and CIB investigating money laundering 

Lamichhane, Joshi and others are being investigated for offences related to money laundering. When requesting detention for investigation from the court, it was done under the provisions of the money laundering laws. Authorities conducting money laundering investigations can detain individuals for up to 90 days.

In the case of Rabi Lamichhane, the Department of Money Laundering Investigation in Lalitpur has also sent a file containing various documents to Kaski Police. An official from the department told The Rising Nepal that the file was sent to Kaski Police because complaints had already been filed against him and some details had been collected by the department.

Similarly, to assist the Kaski Police in the investigation, the Department of Money Laundering Investigation and the Central Investigation Bureau (CIB) of the Nepal Police have deployed an expert team. This team has been analysing Rabi's assets and transactions, assisting the Kaski Police team in further investigating suspicious transactions.

According to the information received so far, there was no significant property under Rabi’s name when he returned home from the United States of America. According to a police official, he returned almost as if he were landless. However, it was found that he later transferred Rs. 50 to 60 million while divorcing his wife in the United States.

The most intriguing aspect is that when he became the Home Minister, the property disclosure report he submitted mentioned only Rs. 110,000 in his account. He also mentioned that his wife Nikita owns five aana of land in Ward No. 8 of Budhanilkantha Municipality. The land was purchased for Rs. 37.5 million, and its source was stated to be his salary.

Similarly, it was mentioned that Rabi Lamichhane owns one ropani and one aana of land in Bhaktapur, which is ancestral property.

According to the investigating officers, after the case against Rabi Lamichhane is filed in the Kaski District Court, there will be a hearing regarding his remand. 

If the court orders him to be remanded in custody for further investigation, he will be presented through the court in other districts. If the court orders bail or release on a personal bond, he will be immediately sent to another district by the police. 

Before this, the police in Rupandehi, Chitwan, Kathmandu, and Parsa will communicate with the Kaski police, requesting that if he is released, he be sent to their jurisdiction.

According to police officials, the remand hearings in the five districts could take at least 25 days. Even if the court does not order remand, Rabi is likely to remain in custody for the entire month of January next year.