Kaski Court drops money laundering, organized crime charges against RSP Chair Lamichhane, others

KATHMANDU, May 22: The Kaski District Court has approved the withdrawal of money laundering and organized crime charges against Rastriya Swatantra Party Chair Rabi Lamichhane, fugitive Gitendra Babu Rai (GB Rai) and other defendants, while retaining cooperative fraud charges.

The decision came after the District Government Attorney’s Office, with approval from then Attorney General Sabita Bhandari, filed a petition seeking to drop the two charges and proceed only with the cooperative fraud case.

A single bench of Judge Himalal Belbase on Friday endorsed the petition, allowing amendments to the original and supplementary charge sheets. Former DIG Chhabilal Joshi has also been cleared of the money laundering and organized crime charges.

In its order, the court stated that the cooperative fraud charges would remain intact, while the charges related to organized crime and money laundering would no longer stand.

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Attorney General Bhandari had initially approved amendments only in favor of Lamichhane on January 14. However, citing an error, she later authorized similar amendments for all defendants, including GB Rai, on January 16.

The court said the petition did not appear to carry any malicious intent and was aimed at facilitating the swift return of depositors’ savings.

The order outlined four key reasons behind the decision.

First, the government had not initially filed charges of organized crime or money laundering, and the victims’ complaints also did not include those allegations. The court noted that the primary objective of the case was to ensure the timely recovery of savings for the victims.

Second, the court observed that retaining the two charges could complicate possible settlements between the victims and the accused, potentially delaying the return of deposited funds.

Third, the bench stated that removing the charges would not undermine the broader principles of justice, as the cooperative fraud allegations would still be prosecuted.

Fourth, the court concluded that prosecutors acted without bad faith and appeared sensitive to the rights and interests of both the complainants and the accused.

The court subsequently ordered amendments to the charge sheets, retaining the cooperative fraud case while removing the organized crime and money laundering allegations.