Kathmandu – The MP post of Rastriya Swatantra Party President and former Home Minister Rabi Lamichhane is set to be suspended. Lamichhane’s MP post will be automatically suspended after a case filed in court under the Prevention of Money Laundering Act.

District Attorney Kamala Kafle of the District Government Attorney’s Office, Kaski, said that Lamichhane’s post will be suspended as per the act until the final decision of the case is made.

According to Section 27 of the Prevention of Money Laundering Act, an employee, officer or civil servant is automatically considered suspended until the final decision of the case is made. She also said that preparations are underway to send a letter to the Parliament Secretariat regarding the filing of a case in court.

Section 27 of the Prevention of Money Laundering Act provides for automatic suspension. “If any official or employee of an organization established under the prevailing law or any civil servant is detained under this Act, such employee, official or civil servant shall be deemed to have been automatically suspended for the period of such detention and until the case is resolved.”

The District Attorney’s Office, Kaski, filed a case against 31 people, including Lamichhane, in the District Court, Kaski on Sunday. Three cases have been registered against them in the Surya Darshan Cooperative fraud case in Pokhara. A case of cooperative fraud, organized crime and money laundering have been registered against Lamichhane, former DIG Chhabilal Joshi, Leela Pachai, Ram Bahadur Khanal and Krishna Bahadur Gurung. According to the District Court, Kaski, a case has also been filed against eight companies. Similarly, the Office of the Public Prosecutor has suggested that the assets of 5 people should be confiscated.

The police had suggested that 1.5 billion rupees be recovered from 51 people, including Lamichhane, and that they be prosecuted for cooperative fraud, organized crime and money laundering. The police investigation report states that Lamichhane will be sentenced to 4 to 6 years in prison for cooperative fraud, an additional 50 percent punishment for organized crime, and 2 to 15 years in prison and a fine for money laundering.

The District Attorney’s Office filed a supplementary charge sheet in court on Friday, adding additional offenses and amounts against 19 people accused of defrauding cooperatives last year. A case has been filed against the main mastermind of the cooperative fraud, GB Rai, for organized crime, money laundering and violations of the Rastra Bank Act.

Lamichhane’s involvement in the company’s financial transactions even after leaving Gorkha Media