KATHMANDU: Attorney General has decided to withdraw organized crime and money laundering charges against Rabi Lamichhane, chairman of the Rastriya Swatantra Party (RSP), significantly narrowing the criminal cases pending against Rabi Lamichhane.

Attorney General Sabita Bhandari said the decision was taken in response to an application filed by Lamichhane. Under the revised charges, prosecutors will proceed only with cases related to cooperative fraud, while allegations of organized crime and money laundering will be dropped.

According to the Attorney General’s decision, indictments filed at district courts in Kaski, Kathmandu, Rupandehi, Parsa and Chitwan will be amended under Section 36 of the Criminal Procedure Code of 2017. The amendment removes organized crime and money laundering charges against Lamichhane, while maintaining fraud and cooperative fraud charges.

Lamichhane was first charged at the Kaski District Court in connection with alleged fraud involving the Surya Darshan Cooperative, along with organized crime and money laundering. Similar charges were later filed in multiple districts over alleged misappropriation of depositors’ funds from various savings and credit cooperatives.

With the withdrawal of the money laundering charge, Lamichhane is no longer legally barred from serving as a lawmaker or minister. He had previously faced suspension risks due to the money laundering case, a factor that also influenced internal political agreements within his party.