Nepal probes $6.4m fake rescue racket, seeks prosecution of 33
Police investigation uncovers years-long scheme involving fake evacuations, inflated bills and collusion across tourism industry.
Police in Nepal have submitted a sweeping investigation report to prosecutors recommending criminal action against 33 individuals accused of orchestrating a multimillion-dollar insurance fraud involving staged mountain rescue flights.
The four-month inquiry by the Central Investigation Bureau (CIB) alleges collusion among trekking agencies, helicopter operators, hospitals and insurance intermediaries to fabricate emergency evacuations of foreign tourists in order to inflate insurance claims.
According to Manoj KC, the bureau has advised the Kathmandu District Attorney’s Office to pursue charges including crimes against national interest, document fraud, organised crime and illicit financial gain. Ten suspects have been arrested, while 23 remain at large, many believed to be overseas. Arrest warrants have been issued.
Police estimate damages of approximately $6.4m, alongside additional claims of $2.99m and €14,500 linked to complaints, including those from foreign nationals.
The 1,243-page report, described by investigators as containing “hard evidence”, outlines an elaborate system in which false passenger manifests were prepared, unnecessary hospital admissions arranged, and inflated invoices generated for insurance reimbursement. In some instances, a single helicopter journey was billed as multiple emergency evacuations, with a routine Kathmandu–Lukla flight—typically costing around $2,500—allegedly invoiced at up to $31,000.
Four helicopter companies — Air Dynasty, Mountain Heli, Manang Air, and Altitude Air — are cited in the investigation. Authorities say operators supplied falsified flight records to rescue firms.
Hospitals including Siddhi International Hospital, Swacon International Hospital and Era Hospital are also under scrutiny. Police allege that tourists were admitted without medical necessity to justify larger claims, or in some cases not admitted at all, with fabricated bills later issued and proceeds shared among participants.
Among those arrested is Girbanraj Timilsina, detained in February. Other hospital operators are reportedly absconding.
The investigation further identifies irregularities in rescue firms such as Mountain Rescue Service, Nepal Charter Service, Heli on Call, and Everest Experience and Assistance.
Named suspects include executives and operators across the sector, among them Jayaram Rimal, Vivek Pandey, Subash KC, Mukti Pandey, Rabindra Adhikari and Vivek Thapaliya.
Investigators say the fraud extended over several years. Of 1,248 rescues recorded by Mountain Rescue Service, 171 were deemed fictitious. Similar discrepancies were found in other firms’ records.
The case follows earlier concerns raised by the Ministry of Culture, Tourism and Civil Aviation, which had urged action six years ago without result. The current probe was launched after Mr KC assumed leadership of the bureau. He is also known for his role in exposing the Bhutanese refugee scam.
Prosecutors will now determine whether to formally file charges. “After reviewing the cases we have prepared, the case will be registered,” Mr KC said.
If pursued, the case could mark one of Nepal’s most significant crackdowns on fraud within its lucrative trekking and rescue industry.
