The Kaski District Court has remanded former Deputy Inspector General (DIG) Chhabilal Joshi into custody for five days for investigation. The District Police Office in Kaski obtained a court permission to investigate Joshi on charges of fraud and organised crime.

Joshi, arrested in connection with the embezzlement of cooperative funds, was brought to Kaski on Sunday evening in connection with the misappropriation of savings from Pokhara-based Suryadarshan Saving and Cooperative Limited immediately after arresting him from Shankhamul in Kathmandu. He was produced before the court on Monday.

The police sought permission to hold Joshi in custody to investigate allegations that he systematically defrauded the cooperative, citing violations of the Cooperative Act, 2017, and the Prevention of Organised Crime Act, 2007.

After hearing arguments from the government side and Joshi’s legal practitioners, the single bench of Judge Chandrakant Sharma granted permission to the police to investigate him for organised crime and fraud.

The parliamentary special panel, formed to investigate crisis-ridden cooperatives, has recommended in its report that the government initiate legal action against Joshi, one of the founders of the Gorkha Media Network, along with the company’s chair GB Rai, then managing director Lamichhane, and board member Kumar Ramtel.

Joshi, Lamichhane, Rai and Ramtel are accused of collecting millions of rupees from several cooperatives to run the Gorkha Media Network, where they had allegedly embezzled the money.

On Saturday, as recommended by the parliamentary probe panel, Minister of Home Affairs Ramesh Lekhak directed the Nepal Police to take necessary action based on the probe panel’s recommendation. A member of the home minister’s secretariat confirmed this directive to the Post.

The probe panel has recommended prosecuting the four, and the International Criminal Police Organisation (INTERPOL) has issued a diffusion notice for Rai, who is on the run.

Ramtel is already in judicial custody in Kaski for misusing cooperative funds. The police are now considering prosecuting Lamichhane.

Sensing possible arrest, Lamichhane on Sunday requested his party members and supporters to stay alert and on standby saying that the government may do anything to him and his party.

He made the request while addressing his supporters gathered at the party’s headquarters at Balaju, Kathmandu on Sunday evening after unsubstantiated reports stated that the government was preparing to arrest him.

“I don't trust this government. It can do anything. So I earnestly request you all to stay alert,” he said addressing the supporters.

Parallel demonstrations staged in Pokhara for and against Rabi Lamichhane

Pokhara, provincial headquarters of Gandaki, on Monday witnessed parallel protests—for and against Rastriya Swatantra Party (RSP) Chairman Rabi Lamichhane, who is accused of being involved in cooperative scams.

The RSP activists and victims of the Surya Darshan Savings and Credit Cooperative staged separate demonstrations in front of the district administration office of Kaski. The RSP cadres gathered at Sahidchowk with placards, warning the government to not detain Lamichhane on ‘any pretexts’. They said they were compelled to stage demonstrations as the government authorities were hatching conspiracies to detain Lamichhane on false charges and frame him.

“It is our symbolic protest against the government’s plan to frame Rabi Lamichhane on false charges,” said Ekaraj Neupane, the RSP's Gandaki chairman. “We heard that Rabi Lamichhane would be arrested, so we staged demonstrations.” He said the party would also stage demonstrations on Tuesday if needed.

On the other hand, victims of the Surya Darshan Savings and Credit Cooperative took to the street demanding to detain Lamichhane stating that he is one of the accused in the cooperative fraud case. Speaking to reporters, the cooperative victims said that they were forced to stage demonstrations as the RSP activists pressured the government not to detain the suspect involved in cooperative fraud.

The cooperative victims held their protest programme in front of the District Administration Office. The RSP activists gathered some 50 metres away in Sahidchowk chanted slogans in favour of Lamichhane. Anuradha Shrestha, a victim of Pokhara-based Surya Darshan Savings and Credit Cooperative and ward committee member of the RSP, was in a dilemma about which side to join. She finally joined the cooperative victims and chanted slogans against the party's central chairman.

Shrestha, aged 36, of Pokhara Metropolitan City-6 deposited her savings at Surya Darshan Cooperative. She had deposited a total of Rs1.6 million in the accounts of her, her husband and two sons.

“I had even deposited the money that my sons received on their birthdays. I cannot forget my money deposited there,” she said. “If he [Lamichhane] is guilty, he should be punished. If he is not guilty, he should not be framed.”

A good number of security personnel were deployed in the area to avert possible clashes between the rival groups. The parallel demonstrations were held within a distance of a few metres but there were no untoward incidents.

Two weeks ago, the victims of the Surya Darshan Cooperative had waved black flags at Lamichhane who was in Pokhara to attend his party’s provincial meeting in Birauta.

Hundreds of depositors from Surya Darshan Cooperative have been protesting for the past several months demanding return of their defrauded savings.

On October 5 last year, police filed a fraud case at Kaski District Court against Gitendra Babu (GB) Rai, chairman of the Gorkha Media Network, and 18 other former and current directors and employees of the credit cooperatives, accusing them of embezzling over Rs1.1 billion.

During the initial investigation, former home minister Lamichhane and Dipesh Pun, son of former Vice President Nanda Bahadur Pun, were flagged as suspects. To advance the investigations, Kiran Bajracharya, then chief of the Central Investigation Bureau of the Nepal Police, deployed a team led by inspectors.