According to the prosecution, the police, along with Lamichhane, have filed a chargesheet against former DIG Chhabilal Joshi, Lila Pachaai, Ram Bahadur Khanal and Krishna Bahadur Gurung in the same three cases. In addition, lawsuits have been filed against eight companies involved in the scam.
“In the chargesheet, the police found that as much as Nepali Rupees 1.514 billion should be recovered from the suspects,” Khyam Narayan Lamichhane, acting registrar at the court, told ANI over phone.
The police who submitted the investigation report last week had proposed to the public prosecutor to file the cases against them for organized crime, co-operative fraud and money laundering charges.
The police report suggests that Lamichhane should receive four to six years in prison for cooperative fraud, an additional 50 percent penalty for organized crime, and two to 15 years in prison and a fine of double the embezzled amount for money laundering.
The case alleges that Lamichhane failed to disclose the source of Nos. 278,944,705, which is considered illegal.
Investigations have revealed assets worth NRs 743,471,550 under Joshi’s name, the origin of which remains unknown. Joshi has been in police custody since his arrest.
The Public Prosecution Service has also sought seizure of assets of Gitendra Babu Rai (GB Rai), who is currently absconding along with Lamichhane and Joshi.
Former Home Minister Lamichhane and former Nepal Police DIG Joshi, among others, have been accused of siphoning off deposits from Pokhara-based Suryadarshan Cooperative, Butwal-based Supreme Cooperative, Chitwan-based Sahara Cooperative, Kathmandu-based Swarnalaxmi Cooperative and the Parsa-based Sano Paila Cooperative with Gorkha Media Network operating the now defunct Galaxy 4K Television managed.
Lamichhane, Joshi and Rai, among others, were partners in the media company. Lamichhane left the media company in June 2022 to join politics.
A special parliamentary inquiry panel has been formed to investigate crisis-ridden cooperatives. It has recommended the government agencies concerned to investigate Lamichhane, Rai and Joshi, among others, on charges of co-operative fraud.
In addition to the suspects in the case, the Kaski Public Prosecution has requested the confiscation of assets linked to Nikita Poudel, husband of Rastriya Swatantra Party (RSP) chairman and former Interior Minister Rabi Lamichhane, in a money laundering case.
“Confiscation of these assets under the Prevention of Money Laundering Act, 2007,” the filing reads.
The Public Prosecution Service has identified Poudel as the 44th suspect in the case. The property to be seized is a house worth Rs 38.5 million, registered in the name of Poudel, located in Budhanilkantha Municipality, Kathmandu. The house was purchased on December 9, 2019.
The indictment also asks for the seizure of a 550 square meter plot of land in Kavrepalanchok, which is registered in Lamichhane’s name. The land was reportedly acquired through a share distribution in 1996.
Furthermore, the prosecution has sought the seizure 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 some of these funds, including Rs 3.5 million deposited in Poudel’s account, may have been illegally transferred abroad through cryptocurrency or hundi.
The former Interior Minister and chairman of RSP, the fourth largest party in parliament, denied 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 runs to 427 pages, includes a six-page section devoted to Lamichhane’s defense. His statement, spread across pages 16 to 22, addresses the allegations and provides his explanation for the financial transactions in question.
Lamichhane is accused of illegally amassing more than Rs 270 million, with the money allegedly coming from Surya Darshan Savings and Loan Cooperative.
In his statement, Lamichhane claims that “the financial transactions related to his company, Galaxy TV, were conducted in full compliance with legal procedures.”
“Galaxy TV had undergone various stages of approval by government authorities and all taxes were properly deducted when the company commenced operations,” Lamichhane said.
“At the time, there was no reason to suspect that the funds received by his company were illegal. He claimed that the Money Laundering Act does not take into account the situation I am accused of,” Lamichhane claims.
The allegations against Lamichhane are part of a wider investigation involving 44 people, which has seen charges brought against Lamichhane and three others in connection with money laundering.
Former Deputy Prime Minister and Home Minister Rabi Lamichhane will soon be automatically suspended from his post as an MP after a money laundering case was registered against him at the Kaski District Court.
The former TV presenter who rose to political prominence and was twice elected from Chitwan Constituency No. 2 is facing charges including money laundering, organized crime and co-operative fraud.
The cases have raised questions about his political future as an MP. Under the Prevention of Money Laundering Act, 2007 (as amended), “any person holding a public office, such as a lawmaker, who faces a charge of money laundering shall be automatically suspended from office until the matter is resolved.” has been resolved.”
Section (27) of the Act clearly outlines that a public office holder detained under this Act shall be suspended for the duration of his detention and until the disposal of the matter. If the court decides to take Lamichhane into 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)
This report is automatically generated by the ANI news service. ThePrint is not responsible for its content.
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