Ex-Home Minister Rabi Lamichhane, Who Renounced US Citizenship to Join Nepali Politics, Arrested on Cooperative Fraud and Organized Crime Charges

Rabi Lamichhane, the chairman of Rashtriya Swatantra Party (RSP), has been arrested in connection with allegations of embezzlement and organized crime related to the Suryadarshan Cooperative. Lamichhane, a former Deputy Prime Minister and Home Minister, was taken into custody by a police team from the Central Investigation Bureau at his party’s central office in Banasthali, Kathmandu. The Kaski District Court had authorized his arrest following an investigation into his alleged involvement in misappropriating funds from the cooperative.

The case revolves around accusations that Lamichhane, along with other individuals, funneled millions of rupees from the Suryadarshan Cooperative into Gorkha Media Network, a media company where he once served as managing director. The cooperative’s founder, Geetendrabavu (GB) Rai, is also under investigation. According to a special parliamentary committee report, over Rs 63 billion was embezzled from crisis-ridden cooperatives across the country. Several high-profile individuals, including Lamichhane, are implicated in the case.

Lamichhane, a former U.S. citizen who renounced his American citizenship in 2018 to enter Nepali politics, gained popularity as a television presenter before founding his political party in 2022. His party won 20 seats in the national elections, catapulting him to prominence.

Before his arrest, Lamichhane addressed party members and the media, denying any wrongdoing and calling the charges against him an attack on his reputation and political career. He expressed his intent to fully cooperate with the judicial process while criticizing the government for protecting corrupt leaders and targeting him unfairly. In a social media post, Lamichhane condemned the government’s hypocrisy, accusing it of shielding those involved in corruption while prosecuting him.

The parliamentary report recommends legal action against Lamichhane and others involved in the cooperative scandal. The former Home Minister has maintained his innocence, stating that his arrest is politically motivated, and reaffirmed his commitment to seeking justice for the victims of cooperative fraud. The police are preparing to transfer him to Pokhara, where he will face trial.