Rabi Lamichhane to face investigation in Butwal for cooperative fraud after Tihar

KATHMANDU: Rabi Lamichhane, Chairman of the Rastriya Swatantra Party (RSP), will be taken to Butwal for investigation soon after Tihar.

This move is in connection with a complaint of fraud involving the Supreme Cooperative of Butwal.

The custody period granted by the District Court of Kaski expired on Wednesday.

Since the court will be closed from Thursday, the police will seek an extension when the court reopens.

A Kaski Police officer stated that once the District Court grants the extension, they are prepared to transfer him to Butwal.

Lamichhane was arrested in Kathmandu on charges related to Suryadarshan Cooperative fraud and subsequently taken to Kaski.

The Kaski police have completed the initial phase of the statement. With this phase concluded, the police will now send the case to Butwal for further investigation.

During questioning, Lamichhane denied any involvement in misappropriating the cooperative’s funds, asserting that all management responsibilities were handled by GB Rai, and he was unaware of the operations.

He also stated that the name “Rabi Lamichhane” mentioned in the cooperative records does not refer to him and claimed he did not sign any documents related to the loans.

Previously, Kaski police traveled to Kathmandu to present this same statement to the parliamentary investigation special committee.

In a related case, Chabilal Joshi was brought to Butwal after completing his statement in Kaski, also regarding allegations of Supreme Cooperative fraud.

The District Court of Rupandehi has arrested 14 individuals, including Lamichhane and Joshi, and has authorized police to conduct investigations.

Currently, both he and Joshi remain in Kaski police custody. They are accused of embezzling funds from five cooperatives operated by GB Rai, which were then funneled to Gorkha Media.

Additionally, investigations are ongoing at Sano Paila in Birgunj, Sahara in Chitwan, and Swarnalakshmi Cooperative in Kathmandu on similar charges.

The investigations focus on cooperative fraud, organized crime, and money laundering.