Kathmandu: A case has been formally registered against Rastriya Swatantra Party (RSP) Chairman and former Deputy Prime Minister Rabi Lamichhane at the District Court in Parsa, on charges of misappropriating funds from the Sano Paila Cooperative.
Lamichhane is currently under police remand at Bhairahawa jail in connection with the high-profile Supreme Cooperative fraud case, which originated in Rupandehi district. The latest case accuses him of embezzling Rs 57.4 million from depositors’ savings in the Sano Paila Cooperative.
Altogether, 29 individuals, including Lamichhane, have been named as defendants in the case. Authorities claim that the group misappropriated a total of Rs 1.32 billion from the cooperative. The Sano Paila Cooperative was operated by GB Rai, a key suspect in the nationwide cooperative fraud scandal who is currently on the run. The cooperative reportedly had around 800 depositors.
According to the police investigation report, submitted to the District Government Attorney’s Office on April 27, significant portions of the siphoned funds were transferred to companies affiliated with Rai. This includes Rs 13.7 million to Nature Hub International, Rs 18.5 million to Nature Nest Pvt. Ltd., and Rs 10.1 million to SpringWood Real Estate.
Despite the report being ready in April, the case registration process was delayed. The new filing in Parsa adds to Lamichhane’s mounting legal troubles as investigations into large-scale cooperative fraud continue across the country.