[7] On 16 June 2022, Lamichhane announced his resignation from Galaxy 4K TV in order to contest the 2022 general elections later in the year for a seat to the House of Representatives.

[2] After re-acquiring Nepali citizenship, he contested the by-election held for his Chitwan 2 seat in April 2023, and was re-elected securing an even greater margin of votes than in the 2022 general election.

[21][22] His arrest provoked widespread protest rallies in his support across the country with thousands of young people taking to the streets in Chitwan.

A ruling of the Supreme Court of Nepal on 27 January 2023 removed him from all public offices (deputy prime minister and home minister; party chairman and parliamentary party leader) and as Member of Parliament for not following due process and obtaining a new Nepali citizenship after renouncing his American citizenship in 2017.

[31][32][33] In early 2024, Kantipur Daily began publishing a series of articles alleging Lamichhane's involvement in financial embezzlement from cooperatives.

[34] Although the primary accused was Gitendra Babu Rai, who owned the cooperative, Lamichhane was alleged to be involved as his name and signature were on financial documents.

[37] The committee determined that Rai, Lamichhane, and Director Chhabilal Joshi operated a joint account to disburse salaries and allowances to cooperative employees.

While his methods have borne results for the ordinary people on whose behalf he pursues cases of fraud and corruption, critics have pointed to his "nationalist posturing" and "simplistic storylines".

[45] On 5 February 2023, after being stripped of his positions as Home Minister and Member of Parliament by the Supreme Court over irregularities in his citizenship, Lamichhane held a news conference alleging that the Nepali mainstream media had framed him.