Rastriya Swatantra Party president and former home minister Rabi Lamichhane was brought back to Pokhara on Friday as part of the ongoing co-operative fraud probe.

Lamichhane, who is in Kaski police custody, was shifted to Rupandehi on November 12 to record his statement. He was taken back to Pokhara, according to Kaski District Police Office spokesperson Basanta Kumar Sharma. Police in Kaski and Rupandehi districts have been investigating multiple fraud charges against RSP chief Lamichhane.

The investigation centers around allegations of large-scale embezzlement by the Supreme Cooperative in Kaski involving deposits of Rs 780 million of members. Lamichhane is accused of misappropriating Rs 19.6 million in personal loans from the cooperative, which were allegedly diverted to Gorkha Media Network Pvt Ltd, a company he co-founded.

Lamichhane was taken to Bhairahawa on Tuesday for questioning, where police worked to expedite the recording of his statement. The case involves several people, including Supreme Cooperative manager Sagar KC and former president GB Rai, with over 25 suspects still at large.

Lamichhane’s political career, which began in 2022 after he left his role as CEO of Galaxy 4K Television, now faces significant challenges as the investigation unfolds.

The police stepped up the investigation on the recommendations of the parliamentary special inquiry committee formed to investigate the problems of the troubled co-operatives, including the co-operative fraud allegations against Lamichhane.