Police file case against former Nepal Home Minister Lamichhane of fraud, organised crime and money laundering

The District Government Attorney's Office filed the charge sheet against Lamichhane and others at the Kaski District Court in connection with the Suryadarshan Cooperative fraud case.

As per the District Attorney's Office, the police have filed a charge sheet against former DIG Chhabilal Joshi, Lila Pachaai, Ram Bahadur Khanal and Krishna Bahadur Gurung along with Lamichhane on the same three cases. Additionally, cases have been filed against eight companies involved in the scam.

"In the charge sheet, the police determined that as much as Nepali Rupees 1.514 billion needed to be recovered from the accused," Khyam Narayan Lamichhane, acting registrar at the court told ANI over the phone.

The police who submitted the investigation report last week, had proposed the district attorney file the cases against them on organised crime, cooperative fraud and money laundering charges.

The police report has suggested Lamichhane be sent to jail for four to six years for cooperative fraud, an additional 50 per cent punishment for organised crime, and two to 15 years in prison and a fine of double the embezzled amount for money laundering.

The case alleges that Lamichhane has not disclosed the source of NRs 278,944,705 which is considered to be of illicit origin.

Investigations have revealed assets worth NRs 743,471,550 under Joshi's name, the origin of which remains undisclosed. Joshi has been in police custody since his arrest.

The District Attorney's Office has also requested the seizure of assets belonging to Gitendra Babu Rai (GB Rai), who is currently absconding along with Lamichhane and Joshi.

Former Home Minister Lamichhane and former DIG of Nepal Police- Joshi, among others, have been accused of diverting deposits from Pokhara-based Suryadarshan Cooperative, Butwal-based Supreme Cooperative, Chitwan-based Sahara Cooperative, Kathmandu-based Swarnalaxmi Cooperative and Parsa-based Sano Paila Cooperative to Gorkha Media Network that ran the now-defunct Galaxy 4K Television.

Lamichhane, Joshi and Rai, among others, were partners in the media company. Lamichhane quit the media company to join politics in June 2022.

A special parliamentary probe panel was formed to investigate crisis-ridden cooperatives has recommended the concerned government authorities investigate Lamichhane, Rai and Joshi, among others, on charges of cooperative fraud.

Apart from those accused in the case, the Kaski Public Prosecutor's Office has requested the confiscation of assets linked to Nikita Poudel, spouse of Rastriya Swatantra Party (RSP) Chair and former Home Minister Rabi Lamichhane, in a money laundering case.

"Confiscation of these assets under the Prevention of Money Laundering Act, 2007," the filing states.

The Public Prosecutor's office has listed Poudel as the 44th defendant in the case. The asset targeted for confiscation is a house worth Rs 38.5 million, registered in Poudel's name, located in Budhanilkantha Municipality, Kathmandu. The house was purchased on December 9, 2019.

The charge sheet also requests the confiscation of a 550 square metre plot of land in Kavrepalanchok, which is under Lamichhane's name. The land was reportedly acquired through a share distribution in 1996.

Additionally, the prosecutor has sought the confiscation of NRs 774,774.59 from the bank accounts of Lamichhane and Poudel, as the source of these funds remains unconfirmed.

The asset forfeiture is part of an investigation into a larger money laundering and cooperative fraud scheme, involving the illegal mobilization of NRs 750 million by the GB Rai Group, linked to Gorkha Media Network.

It is believed that a portion of these funds, including Rs 3.5 million deposited into Poudel's account, may have been illegally transferred abroad through cryptocurrency or hundi.

The former Home Minister and Chairman of RSP, the fourth largest party in the parliament has denied the charges of charges of money laundering, cooperative fraud, and organized crime in his statement to the Kaski District Police.

The supplementary report prepared by the Kaski District Police Office, which spans 427 pages, includes a six-page section dedicated to Lamichhane's defence. His statement, spanning pages 16 to 22, addresses the accusations and provides his explanation for the financial transactions in question.

Lamichhane is accused of illegally amassing over Rs 270 million, with the money allegedly originating from Surya Darshan Savings and Loan Cooperative.

In his statement, Lamichhane claims that "the financial dealings associated with his company, Galaxy TV, were conducted in full compliance with legal procedures."

"Galaxy TV had undergone several stages of approval by government agencies, and all taxes were properly deducted when the company began operations," Lamichhane said.

"At the time, there was no reason to suspect that the funds received by his company were illegal, asserting that the Money Laundering Act does not account for the situation that I am charged with," Lamichhane claims.

The accusations against Lamichhane are part of a broader investigation involving 44 individuals, with charges filed against Lamichhane and three others related to money laundering.

Former Deputy Prime Minister and Home Minister Rabi Lamichhane will soon face automatic suspension from his position as a Member of Parliament following the registration of a money laundering case against him in the Kaski District Court.

The former TV anchor who rose to political fame and got elected twice from Chitwan Constituency No. 2, is facing charges including money laundering, organized crime, and cooperative fraud.

The cases have led to questions about his political future as a lawmaker. Under the Prevention of Money Laundering Act, 2007 (as amended), "any individual holding a public office, such as a lawmaker, who faces a money laundering charge, is automatically suspended from their position until the case is resolved."

Section (27) of the Act clearly outlines that a public office-holder detained under this law will be suspended for the duration of their detention and until the case is disposed of. If the court decides to remand Lamichhane in custody, Lamichhane's parliamentary status will be suspended, marking the second time he has faced such a situation.

Lamichhane was arrested on October 18 in connection with a separate savings fraud case involving Pokhara's Suryadarshan Cooperative Society. He has been in police custody in Kaski ever since. (ANI)