KATHMANDU: In a major legal blow to one of Nepal’s most prominent political figures, the Supreme Court has upheld an earlier decision to place Rastriya Swatantra Party (RSP) Chair Rabi Lamichhane in judicial custody over his alleged role in a large-scale financial fraud involving a savings and credit cooperative in Butwal.
The court’s decision, delivered by Justices Nahakul Subedi and Bal Krishna Dhakal, concluded that Lamichhane was not only involved in the case but served as the mastermind behind the fraudulent misuse of public savings collected by the Supreme Savings and Credit Cooperative.
The controversy revolves around millions of rupees that were unlawfully diverted from the cooperative to Gorkha Media Network, a media company Lamichhane co-founded. The Supreme Court’s 19-point decision outlined that Lamichhane, despite denying knowledge of the funds’ origins, was actively engaged in the financial and operational management of the company from its inception.
According to court records, the cooperative’s funds were funneled into Gorkha Media Network in multiple installments. A loan account under Lamichhane’s own name received Rs 20 million, and later he issued a check of over Rs 4 million back to the cooperative—direct evidence, the court said, that he was aware of and involved in the financial transactions.
Lamichhane had claimed that he was unaware of the source of funds and blamed Gorkha Media chairman G.B. Rai for arranging the financing without informing him. However, this defense was invalidated by signed documents proving that Lamichhane himself had authorized repayments to the cooperative, thereby acknowledging the transaction.
The ruling also referenced findings from a parliamentary committee led by Suryabahadur Thapa Chhetri, which had earlier concluded that Lamichhane played a central role in the embezzlement. The committee recommended legal action, adding weight to the case against him.
Furthermore, testimonies from cooperative officials, company accountants, and media employees confirmed that Lamichhane was actively involved in decision-making related to the company’s finances and the use of cooperative funds. Even Gorkha Media’s board meeting minutes from the early days of the company showed Lamichhane as a key participant and decision-maker.
The Supreme Court justified its decision to uphold the High Court’s order to detain Lamichhane by stating that he had direct financial benefits from the fraudulent loans. The court also said that there was risk of evidence tampering or interference with the investigation if he remained free.
The court further added that the nature of the offense affected thousands of cooperative depositors, making pretrial detention necessary to maintain public trust and judicial integrity.
The court also made it clear that even high-ranking politicians are not above the law. “This verdict sends a message that legal accountability applies equally to all, including prominent political leaders,” the justices wrote.
The ruling has sparked strong reactions across Nepal’s political and public spheres. Supporters of Lamichhane gathered outside the Supreme Court, hoping for a reversal of the High Court’s earlier decision. The crowd grew so large that police were deployed to maintain order, and some journalists covering the scene were forcibly removed from the premises.
The court noted in its ruling that it had taken serious note of social media attacks and negative commentary directed at the original High Court judges, cautioning that such behavior undermines the judiciary and the rule of law.
After weeks of legal proceedings, evidence review, and public debate, the Supreme Court concluded that Rabi Lamichhane must remain in custody while the case proceeds. The court’s findings point to Lamichhane’s active and intentional role in orchestrating a financial fraud that misused cooperative members’ savings for private enterprise.
This case is likely to set a precedent for how Nepal’s legal system treats financial crimes involving political figures and cooperative funds, signaling that the judiciary is willing to pursue accountability at the highest levels.
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