GB Rai

In the House of Representatives, MP Aren Rai raised questions regarding the delayed arrest of GB Rai, a business partner of Rastriya Swatantra Party Chairperson Rabi Lamichhane, in connection with alleged multi-billion rupee embezzlement from cooperatives. Rai also cautioned against misusing state funds for victim compensation while highlighting other issues.

Fugitive GB Rai is accused of embezzling over Rs 21 billion from depositors through more than a dozen cooperatives, with his personal companies reportedly continuing operations despite ongoing legal cases. Suman Khanal, coordinator of the Swarnalakshmi Cooperative Victims’ Struggle Committee, criticized the state mechanism, stating it appears helpless and may be protecting Rai, preventing his arrest and extradition from Malaysia.

The Kaski District Court has approved the withdrawal of organized crime and money laundering charges against Rabi Lamichhane and two others, allowing only the cooperative fraud case to proceed. This decision by the District Government Attorney’s Office significantly alters the legal landscape of the case, with potential implications for other cooperative fraud cases across Nepal.