Kathmandu: Police have arrested Rastriya Swatantra Party (RSP) President and former Deputy Prime Minister Rabi Lamichhane, in connection with an embezzlement case involving the Surya Darshan Cooperative in Pokhara. Lamichhane was detained from his party office in Banasthali on Friday, according to RSP Acting Spokesperson Manish Jha.

The arrest followed a warrant issued by the District Court of Kaski, which granted permission to the Nepal Police to investigate accusations that Lamichhane, along with Gitendra Babu (GB) Rai, founder of the cooperative, siphoned funds from the Surya Darshan Cooperative to Gorkha Media Network.

Before his arrest, Lamichhane addressed party members and the media, claiming his innocence and pledging to cooperate with the judicial process. He argued that his arrest was a setback for the nation’s aspirations for political change.

The RSP has described the arrest as an attack on the "new generation’s politics," but the party emphasized that it would not resort to actions that disrupt public order or damage property in protest. Acting Spokesperson Jha said, "We respect the legal process and will fight for political change through the judiciary."

The investigation into Lamichhane and Rai is ongoing, with the authorities probing their alleged collusion to misappropriate cooperative funds.