Rabi Lamichhane, chairman of the Rastriya Swatantra Party (RSP) and former home minister, has been suspended from his post as an MP after filing charges under the Money Laundering Prevention Act 2008.
The Secretariat of the Federal Parliament issued a notice confirming the suspension after Kaski police sent it a letter informing it of the money laundering case 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, are facing charges of co-operative fraud, organized crime and money laundering. The indictment accuses the group of embezzling more than Rs2.7 billion, with demands for restitution and stiff penalties, including prison sentences 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 matter is resolved. As a result, Lamichhane’s suspension was formalized, with Chairman Devraj Ghimire being informed of the allegations by the Kaski District Attorney’s Office and the district police.
The fraud case also involves eight companies and other cooperatives, including Suryadarshan Cooperative, which allegedly channeled money to ventures like Gorkha Media Network, which was 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 appointed vice-chairman DP Aryal as acting chairman to oversee its activities during this period of legal and political turbulence.