Rabi Lamichhane was remanded in custody for six days on charges of fraud and organized crime

The Kaski District Court on Sunday remanded Rastriya Swatantra Party (RSP) leader and former Home Minister Rabi Lamichhane in judicial custody for six days for further investigation into misappropriation of cooperative funds and organized crime.

Lamichhane was arrested by a Central Investigation Bureau (CIB) team from his party office in Kathmandu on Friday. He was then taken to Pokhara where he was produced before the court on Sunday. The court headed by Justice Navaraj Dahal granted permission for the six-day remand on the request of the police.

Lamichhane, along with several other people, is accused of being involved in embezzling funds from Pokhara-based Suryadarshan Savings and Credit Cooperative. The arrest followed a parliamentary inquiry that linked him and others to the embezzlement of millions of rupees from the cooperative.

The court had previously issued arrest warrants against 14 people and initiated investigations into their involvement. So far, over 60 people have been implicated in the cooperative’s financial irregularities, seven of whom, including Gorkha Media Network director Chhabilal Joshi, were in custody pending trial.

Meanwhile, protests both for and against Lamichhane broke out in Pokhara. RSP supporters called for his release and cooperative victims called for his detention for further investigation into the fraud allegations.

Police remain on alert to prevent escalation during the parallel demonstrations.

The Kaski District Office had previously issued a cease and desist order on Sunday afternoon to prevent a possible confrontation between the protesting parties.