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Kathmandu Court hears Lamichhane’s fraud allegations


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KATHMANDU: Rabi Lamichhane, the former home minister and chairperson of the Rastriya Swatantra Party (RSP), made an appearance at the Kathmandu District Court on Sunday in relation to the fraud case involving the Swarnalaxmi Cooperative. Lamichhane is charged with embezzlement of money from the cooperative in Kathmandu.  


This court appearance comes shortly after Lamichhane’s release on bail by the Kaski District Court in a separate fraud case concerning the Pokhara-based Suryadarshan Cooperative. In that case, the court ordered his release on a bail amount of Rs 6.5 million after he spent 84 days in custody. Lamichhane arrived in Kathmandu on Friday, January 9, to face further legal proceedings.  


After police investigations, Lamichhane and 38 other people were charged by the Kathmandu District Government Attorney's Office on January 5. Former board members and important Swarnalaxmi Cooperative leaders are among the accused. Among the prominent individuals listed in the chargesheet are treasurer Kumar Ramtel, secretary Iran Lama, joint secretary Kabita Tamang, previous chair Deepak Lama, chair Gitendra Babu (GB) Rai, vice chair Devendra Babu Rai, and former vice chair Chhabilal Joshi.


According to the charges, the cooperative’s officials and members systematically mismanaged and diverted funds amounting to Rs 1.199 billion. Police investigations suggest the involvement of multiple high-ranking officials, including former treasurer Sabina Alemagar, accounts coordinator Ganeshraj Shrestha, and former committee members Kalpana Kumari Shrestha and Raju Baral, in organized financial crimes.  


Lamichhane is also connected to cooperative fraud instances in other districts. These consist of Parsa's Sano Paila Cooperative, Chitwan's Sahara Chitwan, and Rupandehi's Supreme Cooperative. According to reports, legal action is being taken to file cases against him in these regions.  


The public has paid close attention to the well-known individuals involved in the Swarnalaxmi Cooperative fraud case. Charges of financial impropriety have also been brought against former workers of Gorkha Media Pvt. Ltd., the cooperative's linked business.  


As investigators continue to uncover alleged financial irregularities in Nepali cooperatives, Lamichhane's legal problems have gotten worse. Police have discovered similar patterns of embezzlement in Butwal, Chitwan, and Parsa cooperatives.  


The charges against Lamichhane and the other defendants, which include cooperative fraud and organized financial crimes, demonstrate systemic mismanagement in Nepal's cooperative sector. The examples show how stricter scrutiny and legislative adjustments are becoming more and more necessary for cooperative governance.