Dhruba Bar Singh Thapa & Associates

Kathmandu, May 23, 2025 — The Supreme Court of Nepal has dismissed a habeas corpus petition filed by Nikita Paudel, wife of Rastriya Swatantra Party (RSP) Chairperson Rabi Lamichhane, thereby upholding the decision of the Tulsipur High Court’s Butwal Bench to keep Lamichhane in judicial custody pending trial in a significant cooperative fraud case.
A division bench comprising Justices Nahakul Subedi and Balkrishna Dhakal ruled that the existing evidence does not reasonably establish Lamichhane’s innocence in the alleged offenses. Consequently, the court found no error in the high court’s order to detain Lamichhane and his co-accused, former Deputy Inspector General Chhabilal Joshi, for trial proceedings
Initially, the Rupandehi District Court had released Lamichhane on bail of NPR 10 million on January 26. However, the Butwal Bench of the Tulsipur High Court overturned this decision on April 4, ordering his detention. Lamichhane was subsequently arrested from his residence in Kathmandu and transferred to Rupandehi District Prison .
The Supreme Court’s recent decision mandates that Lamichhane remain in custody until the Rupandehi District Court delivers its verdict. Lamichhane, who has maintained his innocence, asserting that he was unaware of the cooperative funds being deposited into Gorkha Media’s accounts. The court, however, rejected this claim, citing evidence of his active participation in financial decisions and board meetings of the organization.
The case continues to draw national attention, highlighting issues of financial misconduct and accountability within Nepal’s cooperative sector.