Rabi Lamichhane, Nepal’s former Home Minister and leader of the Rastriya Swatantra Party (RSP), is facing serious charges of cooperative fraud, organized crime, and money laundering following his arrest two months ago.
Lamichhane, who renounced his U.S. citizenship in 2018 after controversy arose regarding his Nepali visa while he was working as a television program host in Nepal, is now under investigation for his alleged involvement in a large-scale financial scandal connected to the Suryadarshan Cooperative.
Before his rise in Nepali politics, Lamichhane was a manager at a Subway outlet in Baltimore, U.S. His career took a dramatic turn when he returned to Nepal, founded the RSP in 2022, and quickly gained political prominence. In the 2022 national elections, his party won 20 seats, propelling him to the position of Deputy Prime Minister and Home Minister. However, Lamichhane’s political career is now overshadowed by the allegations against him.
The charges stem from an investigation into the Suryadarshan Cooperative fraud, where Lamichhane, along with former Deputy Inspector General (DIG) Chhabilal Joshi and other associates, allegedly embezzled over USD 20 million (approximately Rs 2.7 billion).
According to authorities, funds from cooperatives such as the Suryadarshan Cooperative were diverted to ventures like the now-defunct Galaxy 4K Television under Gorkha Media Network, a company Lamichhane was involved with before resigning in 2022 to focus on politics. The investigation revealed that these funds were misused for personal gain and for running media operations linked to the accused.
The Kaski District Court chargesheet has recommended harsh penalties for the accused, including 4–6 years in prison for cooperative fraud, an additional 50% punishment for organized crime, and 2–15 years in prison for money laundering, along with fines double the embezzled amount. Along with Lamichhane, 30 others, including key figures in the cooperative network, have been implicated in the scam.
The case has significant legal and political implications. Lamichhane faces automatic suspension from his parliamentary position under the Money Laundering Prevention Act 2008, as the charges are serious enough to mandate such a move. The Kaski District Police has requested Speaker Devraj Ghimire to officially suspend Lamichhane from his duties, which is expected to be formalized through a parliamentary notice.
As investigations continue, Lamichhane, who represents Chitwan’s Constituency-2, faces a significant crisis in his political career.
Susan Shrestha
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