BUTWAL – The Butwal Bench of the High Court Tulsipur has ordered the release of Rastriya Swatantra Party (RSP) Chairman and former Home Minister Rabi Lamichhane on bail.
The order was issued on Thursday by a division bench comprising Justices Basu Dev Acharya and Tej Narayan Poudel, overturning the earlier decision by the Rupandehi District Court to keep him in judicial custody pending trial.
The Verdict: Bail Set at NPR 2.74 crore
The High Court has set the bail amount at NPR 2,74,86,000/- (approximately 2.75 crore). This figure was calculated based on the specific amount of alleged misappropriation attributed to Lamichhane in the charge sheet regarding the Supreme Cooperative fraud case.
The bench concluded that pre-trial detention was not mandatory in this instance, provided the financial liability was secured. The court accepted the defense’s argument that the bank guarantee previously submitted by Lamichhane was sufficient to cover the claims made against him.
Three Key Conditions for Release
While ordering his release, the High Court imposed strict conditions to ensure compliance with the legal process. According to the court order, Lamichhane must adhere to the following conditions:
- Travel Restrictions: The court has issued a clear directive prohibiting Lamichhane from travelling abroad without prior judicial permission. Whether for personal or institutional purposes, he is required to inform the court and obtain formal approval before leaving the country.
- Commitment to Future Liability: A significant clause in the order requires Lamichhane to submit a written commitment. He must agree to pay any additional compensation or fines should the final verdict find him liable for amounts exceeding the current bail. The court noted that while the current bail covers the immediate alleged loss, the final determination of liability remains with the trial’s conclusion.
- Verification of Bank Guarantee: The order directs the verification of the bank guarantee Lamichhane had previously submitted to the District Court. The High Court stated that since the bail amount matches the proportional compensation amount, the existing guarantee—once verified by the District Court—will suffice for his release.
Background and Context
Rabi Lamichhane has been in custody since late October, facing serious allegations of misappropriating funds from the Butwal-based Supreme Savings and Credit Cooperative. The prosecution alleges that approximately NPR 2.75 million from the cooperative was embezzled and channeled into the Gorkha Media Network, where Lamichhane served as Managing Director at the time.
The case is part of a high-profile investigation into cooperative fraud across multiple districts. Lamichhane’s defense has consistently argued that he had no direct involvement in the financial mismanagement of the cooperatives and that the charges are politically motivated.
The Rupandehi District Court had previously denied bail, citing the severity of the charges—which include organized crime—and the risk of evidence tampering. The High Court’s Thursday ruling effectively reverses that stance, prioritizing the securing of financial liability over physical detention during the trial.
What Happens Next?
Following the High Court’s directive, the case file is being returned to the Rupandehi District Court. The administrative process involves:
- Formal verification of the bank guarantee.
- Signing of the written commitment regarding future liabilities.
- Issuance of the release letter to the prison authorities.
If the procedural requirements are met promptly, Lamichhane is expected to be released from custody as early as Friday. This development marks a significant victory for the RSP leader and his supporters, though the substantive legal battle regarding the fraud charges remains to be fought in court.
