Lamichanne’s arrest and RSP’s path ahead

Rastriya Swatantra Party (RSP) chairman and former Deputy Prime Minister Rabi Lamichhane has spent 13 days in police custody in Kaski, sparking street protests from his party members and supporters who argue his arrest is politically motivated. They contend Lamichhane is uninvolved in the alleged misappropriation of cooperative funds and that his detention is intended to weaken RSP. Lamichhane, previously a TV show presenter and managing director of Gorkha Media, which owns Galaxy Television, was arrested based on a parliamentary probe into cooperative fund misuse nationwide.

Some cooperative victims have filed cases against Lamichhane in Pokhara and Lumbini. While the parliamentary panel found no direct evidence linking Lamichhane to cooperative fraud, it noted substantial cooperative funds had flowed into Gorkha Media, where Lamichhane holds a minor share and acted as managing director. Police are investigating him on charges of cooperative fraud, money laundering, and organized crime. Reports indicate JB Rai, a key figure connected to the case, is in communication with state authorities, signaling his willingness to return to Nepal and assist in the investigation.

The Rupandehi court has permitted police to arrest Lamichhane for further inquiry, suggesting that the process may extend, particularly given the money laundering charges. Lamichhane’s lawyers argue that his role as managing director of Gorkha Media does not inherently imply misappropriation, emphasizing that his lack of direct involvement in cooperatives exempts him from fraud charges. Meanwhile, RSP leaders claim Lamichhane’s arrest is part of a broader political agenda to hinder RSP’s influence, which critics view as an attempt to interfere with judicial processes through public protests and pressure on the government. They are also said to be in talks with the ruling parties to make an environment for his release stating that investigation can be continued even after freeing him.

Lamichhane, who transitioned from popular television host to political leader, founded RSP in 2022. His efforts to advocate for Nepali migrant workers and expose corruption earned him substantial public support, propelling his party to become the fourth-largest in the House of Representatives with 21 seats. 

Growing public dissatisfaction against major political parties—Nepali Congress, CPN-UML and CPN (Maoist Center)—also helped the party. Initially, RSP had few prominent faces aside from Lamichhane, but figures like Swarnim Wagle have since joined, expanding the party's profile.

Lamichhane’s political career was hit by one controversy after another right from the beginning. Soon after he was elected to the House of Representatives and became Minister for Home Affairs, the legality of his citizenship came into question. He was also accused of holding dual passports. He lost his parliament seat over his citizenship controversy and had to re-contest the election from Chitwan, which he won comfortably.  The issue of his citizenship has already been resolved but the one relating to his alleged dual passport still remains.

Lamichhane’s arrest over cooperative fraud has polarized public opinion. Some view it as a necessary legal action following parliamentary recommendations, while others see it as an orchestrated attack by established parties seeking to stymie RSP’s rise. RSP leaders highlight inconsistencies in enforcement, citing the government’s reluctance to arrest figures linked to cooperative fraud within the ruling coalition, such as Dhana Raj Gurung from Nepali Congress and others associated with CPN-UML. Prime Minister KP Sharma Oli noted that 600 arrests have been made in connection with cooperative fraud, though RSP claims selective enforcement targeting Lamichhane alone is politically driven.

The 2022 general elections and subsequent by-elections indicated that RSP could pose a significant threat to the three major parties. But whether Lamichane’s arrest could benefit the party or affect its popularity remains unknown. Already, there are concerns that if Lamichhane gets convicted, the party could face a political setback. RSP is yet to build its organizational structure, particularly at the local level. The party has solely relied on its popularity as an alternative political force against the old parties to win votes. 

Now amid Lamichhane’s prolonged detention, his party is concerned by signals indicating his potential detention until the Chhath festival. RSP leaders say this extension represents systematic harassment and misuse of state resources. The Kaski District Government Attorney's Office will decide whether to formally charge Lamichhane based on the ongoing police investigation. If charged, he would face suspension from his parliamentary seat and trials in Rupandehi and Chitwan for alleged involvement in cooperative fraud.

The RSP has adopted a dual strategy of mobilizing street protests and engaging in dialogues with other political entities to secure Lamichhane’s release. They have organized a protest coordination committee led by Vice-chairman Dol Prasad Aryal, alongside a political-civic dialogue committee headed by Wagle, to build alliances with like-minded parties, civil society, and the public. Although RSP’s constitution allows its vice-chairpersons to manage operations in Lamichhane’s absence, internal confusion over shared responsibilities has prevented the appointment of an acting president.

With RSP claiming retaliatory state actions against their leader, they continue to press for his release, advocating for an investigation that respects due process while cautioning against a selective legal approach that could undermine public trust.