The District Court of Kaski has withdrawn the charges of money laundering and organized crime against Ravi Lamichhane, retaining only the allegation of cooperative fraud. Following this withdrawal, Lamichhane’s suspension was automatically lifted, enabling him to legally participate in parliamentary activities. The District Court stated that the revision of charges was primarily based on the necessity to return the victims’ funds, thereby opening the path for reconciliation.
May 22, Kathmandu – The District Court of Kaski has amended charges against Ravi Lamichhane, chairman of the Rastriya Swatantra Party and former Home Minister, removing accusations related to money laundering and organized crime. On the decision of Attorney General Savita Bhandari Baral, who led the transitional electoral government under Chief Justice Sushila Karki, the case involving money laundering and organized crime was withdrawn in late December. Following that, the District Government Attorney Office in Kaski filed a petition to amend charges at the District Court. Four and a half months later, the court issued an order to revise the charges.
Now, only the cooperative fraud case remains pending against Lamichhane in Kaski. The District Judge, Himalal Belbase, stated in his order, “After reviewing the petition, it has been deemed appropriate to maintain the charge of cooperative fraud alone and remove the charges of organized crime and money laundering under Section 36 of the Criminal Procedure Code, 2074.” The order effectively leaves only the cooperative fraud charge in the Kaski District Court against Lamichhane, simultaneously quashing the money laundering charge there.
Following this order, Lamichhane’s suspension was automatically lifted, and options for reconciliation by refunding victims’ money became available. Since the withdrawal removes the legal restrictions that mandated suspension for public office holders, Lamichhane is now legally permitted to participate in parliamentary activities. This decision also applies to others implicated in the Surya Darshan cooperative fraud case in Pokhara, including GB Rai and Chhabilal Joshi. If the accused refund the funds, reconciliation might be possible at any time, potentially resulting in case dismissal.
Kaski District Attorney Kamala Kafle commented, “The path for reconciliation is now open. The court has withdrawn charges of organized crime and money laundering, which can be considered effectively nullified. Some have already filed petitions for reconciliation, and the process will move forward.”
Six Grounds Cited by the Court
The permission to amend charges against Ravi Lamichhane granted by the District Court and the Attorney General’s decision largely align in justification. The Kaski District Court outlined six key grounds for approving the charge revision:
- Return of Victims’ Savings: The court prioritized the swift and easy return of the victims’ savings as the primary basis for amending charges. Since the core purpose of the case is to refund the victims, the court permitted the revision accordingly.
- Initial Charge Registration: The government did not initially file charges of money laundering and organized crime, which the court noted as a second basis for amendment.
- Victims’ Claims: Beyond the cooperative complaint, victims did not claim the two additional charges. The court respected this when revising the charges, noting that victims can still recover their money via cooperative fraud.
- Mediation Feasibility: Maintaining charges of money laundering and organized crime would make reconciliation between complainants and accused impossible, necessitating the amendment of these two charges for mediation.
- Procedural and Substantive Justice: The court emphasized that while legal process is foundational to justice, it should not override the essential spirit of justice. The prosecution’s amendment request showed no ill intent and demonstrated sensitivity to the rights of both parties.
- Rights Sensitivity: Reinforcing the above, the court noted the balanced consideration of the rights and protections of all involved.
Pending Cases in Other Districts
Although charges have been amended in Kaski, cooperative fraud and organized crime allegations remain pending against Lamichhane in other districts. For example, there is no organized crime charge in Chitwan. In Kathmandu, Rupandehi, and Parsa, reconciliation seems unlikely because organized crime charges have also been filed. Withdrawal of these charges in other districts would require formal petitions by government attorneys in court. Outside Kaski, money laundering charges do not exist; however, even if organized crime charges were withdrawn, only cooperative fraud allegations would remain. Should victims receive refunds, reconciliation is likely, which could lead to case dismissal and avoidance of conviction or punishment.
Why Did It Take Four Months?
Attorney General Savita Bhandari authorized the withdrawal of money laundering and organized crime charges against Ravi Lamichhane and instructed government attorneys to proceed accordingly in late December, upon Lamichhane’s request. She stated the need to preserve the possibility of a settlement by removing charges other than cooperative funds misappropriation from primary, additional, and supplemental charge sheets. However, soon after the decision became public, three writ petitions were filed at the Supreme Court, claiming the attorney general’s authority to amend charges was unconstitutional and demanding its revocation.
The Supreme Court prioritized the hearing but did not issue an immediate order, assigning the case to a three-judge full bench. Despite two scheduled hearings, proceedings were postponed due to petitions from the Attorney General’s office. Meanwhile, the District Government Attorney Office in Kaski requested charge withdrawal amid ongoing Supreme Court deliberations. Judge Neetigya Rai instructed filing the petition at the District Court only after orders from the Supreme Court.
Further complicating matters, Ram Bahadur Khanal, director of Surya Darshan Cooperative, filed a case in the High Court of Pokhara seeking to annul the District Court order. The two-judge panel led by Judges Dr. Ratna Bahadur Bagchand and Merina Shrestha ruled that all government attorneys and stakeholders must be heard before the final decision.
Subsequently, the District Court heard the petition and amended the charges. District Attorney Kamala Kafle said, “Acquittal is not automatic based on refunded government funds. If victims recover their savings, a settlement will be reached; otherwise, the cooperative fraud case will remain, and if the evidence suffices, punishment can be imposed.”
