Rastriya Swatantra Party (RSP) chair and former home minister, Rabi Lamichhane, has been suspended from his position as a Member of Parliament following the filing of charges under the Money Laundering Prevention Act 2008.

The Federal Parliament Secretariat issued a notice confirming the suspension after the Kaski police wrote to it informing the money laundering case filed against Lamichhane.

The charges relate to Lamichhane’s alleged involvement in the Suryadarshan Cooperative fraud case. He, along with 30 others, including former DIG Chhabilal Joshi, faces allegations of cooperative fraud, organised crime, and money laundering. The chargesheet accuses the group of embezzling over Rs2.7 billion, with demands for restitution and severe penalties, including imprisonment of up to 15 years for money laundering offences.

The Money Laundering Prevention Act mandates the automatic suspension of any official facing such charges until the resolution of the case. As a result, Lamichhane’s suspension was formalised, with Speaker Devraj Ghimire notified of the charges by the Kaski District Attorney’s Office and the District Police.

The fraud case also implicates eight companies and additional cooperatives, including Suryadarshan Cooperative, which allegedly diverted funds to ventures such as Gorkha Media Network, previously linked to Lamichhane.

With Lamichhane’s suspension, the RSP is also preparing to appoint a new leader for its parliamentary party. Meanwhile, the party has already designated vice-chair DP Aryal as the acting chair to oversee its operations during this period of legal and political turbulence.