The top court of Nepal has demanded an official explanation for the decision to remove serious criminal allegations against a former Home Minister, Rabi Lamichhane.
On Tuesday, a Supreme Court bench led by Justice Abdul Aziz Musalman issued a directive requiring the Attorney General’s Office to provide a written justification within 15 days. The court also requested Lamichhane to reply to the case, either personally or through a lawyer.
“We have instructed the Attorney General’s Office to respond to the petition within the given timeframe,” said Supreme Court spokesperson Nirajan Pandey.
This development follows three legal challenges filed on Sunday contesting the legality of the government’s move. While fraud-related charges linked to cooperative fund misuse remain against Lamichhane, authorities recently revised the case to drop more severe accusations of organized crime and money laundering.
Those challenging the decision argue it undermines legal principles.
“The Attorney General lacks the authority to remove charges of money laundering and organized crime. This action is illegal and against the constitution,” said Youbraj Paudel, a lawyer and petitioner.
Senior counsel Tikaram Bhattarai noted the timing could benefit Lamichhane ahead of national elections scheduled for March 5, which were prompted by political upheaval last September. “This appears to be an attempt to clear his name. If the charges remain, he cannot serve in parliament. By dropping these accusations, he could stand for election and win,” Bhattarai stated.
Lamichhane faces multiple cases across the country linked to the so-called cooperative scam. During his time as managing director of Gorkha Media Network, which operated Galaxy 4K TV, he is accused of misappropriating funds from savings cooperatives.
The original charges were filed under the previous administration led by KP Sharma Oli. Lamichhane has consistently claimed the more serious accusations were politically driven to halt his political ascent.
Attorney General Sabita Bhandari said her office removed the specific charges after reviewing Lamichhane’s request roughly six weeks ago. “I believed the earlier government’s motives were improper, aimed at revenge. That led to my decision to drop the organized crime and money laundering counts, though the fraud case remains,” she explained.
Bhandari added that adjustments were made for all defendants to ensure fairness. She also mentioned Lamichhane has pledged to help recover funds for cooperative victims.
The case has become a test for political accountability in Nepal. Lamichhane, a former television host, saw a rapid political rise. In early 2023, the Supreme Court nullified his parliamentary seat and ministerial role, ruling he had lost citizenship after renouncing his U.S. nationality. He later won a by-election in Chitwan.
On Tuesday, a local court ordered him to post about $69,000 as bail in a related embezzlement case.
The Supreme Court will hear further arguments on Wednesday to decide whether to issue an interim order blocking the charge withdrawal.