BIRATNAGAR: The Morang District Court has ordered the release of Abhishek Giri from custody, directing that the ongoing investigation against him proceed while he remains out of detention.

A bench led by Judge Tanka Bahadur Mahat issued the order on Monday, upholding a previous directive from the High Court to keep Giri outside of custody during the investigative process.

The District Police Office, Morang, had presented Giri before the court to extend his remand for further investigation into charges of “organized crime” and “money laundering.”

While the court ordered Giri’s release, it granted a remand extension for three of his associates.

According to Hem Bahadur Budhathoki, the Information Officer at the Morang District Court, Giri’s associates—Sanjay Mandal, Binod Kumar Singh, and Bijay Kamat—have been remanded in custody for seven days to facilitate investigations into charges of “criminal gain” (extortion).

Giri, who was initially arrested on charges of criminal gain, saw his previous remand period expire on Monday.

On the same day, police requested a remand extension under two additional severe charges, which the district court ultimately denied.

Earlier on July 1, the Biratnagar High Court had dismissed a habeas corpus petition filed by Giri, but it set a strict timeline for the police investigation.

A joint bench of High Court Judges Ganesh Thakur and Narayan Prasad Regmi had issued a directive stating that the police must either complete the investigation and file a charge sheet within five days or release him from custody and continue the legal process externally if the probe remained unfinished.

The District Court based its latest ruling on this very directive from the High Court.

Giri was apprehended by police on June 27 from his residence in Madhumara, Biratnagar-8.

He stands accused of financially exploiting inmates at the Morang Prison by misappropriating their food rations, allowances, and labor wages.

The police initiated the probe following formal complaints regarding the financial exploitation inside the correctional facility.

The police department has clarified that although Giri has been released from custody, the criminal investigation against him will actively continue.