KATHMANDU:   Gold smuggling has entrenched itself as one of Nepal’s most intractable criminal enterprises. Despite frequent seizures and arrests, the trade persists—its roots intertwined with political influence and systemic corruption. Analysts argue that porous borders, limited security infrastructure, and complicit officials have turned Nepal into a convenient corridor for illicit gold. The result is a growing threat to the country’s financial stability and internal security, as smuggling networks continue to operate with impunity.

Last week, the Biratnagr High Court sentenced Chudamani Upreti, aka “Gore,” to 10 years in prison in connection with the 2018 murder of Sanam Shakya in Urlabari. The ruling, delivered by a joint bench of Judges Mahendra Nath Upadhyay and Prakash Chandra Adhikari, partially overturned a Morang District Court verdict. Upreti received an additional 10-year term for abduction and unlawful confinement, though he had earlier been handed life imprisonment for culpable homicide.

The court reduced sentences for co-accused Narendra Karki, Mohan Kafle, and Bhojraj Bhandari to 10 years each, while sentencing accomplice Madan Silwal to three years. The original penalties for Lakpa Sherpa and Bhavin Tamang were upheld. The court upheld the acquittal of several former police officials and businessmen, citing insufficient evidence. The 33 kilograms of gold, smuggled from Dubai in January 2018 and later linked to Shakya’s killing, remains missing.

On 21 January, 2018, as much as 33.5 kilograms of smuggled gold from the United Arab Emirates arrived at Nepal’s Tribhuvan International Airport. Initially believed to belong to the notorious smuggling operator Gore, the gold mysteriously disappeared before it could reach its intended owner. While early investigations pointed to a new suspect, MK Agrawal, further scrutiny revealed a far more powerful and elusive figure behind the operation. This individual, with deep connections to top police officials and high-ranking political figures, remains unnamed, hidden from public view, and shielded by a network of influence that ensures their secrecy.

As the search for the missing gold intensified, the investigation took a sinister turn. On 3 March 2018, mule Sanam Shakya, a key player in the smuggling operation, was kidnapped and brutally tortured to death. His lifeless body, wrapped in a towel along with a mattress and tarpaulin, was being transported in a Scorpio jeep (Ba 12 Cha 5963) to Biratnagar-3 when police, during a routine check, uncovered the grisly scene. Shakya’s body bore clear signs of violent abuse.

The same day, Tej Raj Malla, Narendra Karki (also known as Krishna), and Mohan Kafle were arrested in connection with Shakya’s murder. Police quickly issued a notice about the discovery and the arrests. Later that evening, another announcement linked Shakya’s death to his role in the gold smuggling operation, stating he was kidnapped and murdered in Siraha.

However, inconsistencies soon emerged. The following day, police revised their account, claiming that Shakya was killed at Solti Khola in Urlabari-1, Morang, not in Biratnagar.

The case escalated as accusations of negligence surfaced. A complaint filed at Nepal Police Headquarters alleged that local police in Morang had failed to act on the gravity of the crime. Mounting public and political pressure led to the formation of an independent probe committee under the civilian leadership of the home ministry. This move signaled a broader investigation into possible collusion between senior police officials and the powerful smuggling nexus behind the vanished gold.

Why investigation report remains concealed?

On 3 April 2018, the Council of Ministers formed a nine-member committee under the coordination of Joint Secretary Ishwar Raj Paudel to investigate the smuggling of 33 kilograms of gold and the murder of Sanam Shakya. The committee members included then-SSP Basanta Lama, SP Sudip Pathak, Hutraj Thapa of the National Investigation Department, and other government officials.

After completing the investigation, the committee submitted a 756-page report to then-Prime Minister KP Sharma Oli on August 1, 2018, at the Prime Minister’s residence in Baluwatar. Present during the submission of the report were then-Home Minister Ram Bahadur Thapa, Home Secretary Prem Rai, and Inspector General of Police (IGP) Sarbendra Khanal.

A special committee report unveiled Deepak Malhotra’s involvement in gold smuggling operations, painting a damning picture of corruption and political interference. Despite mounting evidence and explicit recommendations for his arrest and investigation, Malhotra’s powerful political connections shielded him. The report detailed how Malhotra strategically placed loyal individuals in key positions across customs and critical offices to streamline smuggling operations. While the committee boldly included his name in its findings and urged action, the report has remained stalled, buried under the weight of political pressure and high-level government obstruction.

During the investigation, Malhotra’s partner Bimal Poddar, allegedly involved in hundi and gold smuggling, was taken into custody. The report revealed that Poddar had a long-standing partnership with Malhotra involving gold transactions. In his statement, Poddar admitted to facilitating gold smuggling operations for Malhotra but denied any direct involvement in the 33-kilogram gold case.

Poddar’s statement revealed further details about his and Malhotra’s collaboration. He disclosed that Malhotra’s company had signed a 30-year lease agreement with the Civil Aviation Authority of Nepal to construct and manage facilities such as an underground channel, traffic hall, parking lot, and commercial building adjacent to the Tribhuvan International Airport. This agreement enabled Malhotra to exert significant influence over airport operations.

Poddar also stated that Malhotra had bribed the then-Tourism Minister Sharat Singh Bhandari with land worth Rs 10 million in Kathmandu and Mahottari to secure approval for the construction and management project. This bribery allegation was corroborated by the investigation committee’s findings, which concluded that Malhotra used his financial resources and political connections to further gold smuggling operations systematically. The committee’s report also highlighted Malhotra’s extensive involvement in the gold smuggling network and recommended a thorough investigation into his activities.

Despite the committee’s recommendations, no significant action was taken against Malhotra. The committee’s attempts to question and investigate him were thwarted by his political reach. A member of the investigation committee noted that Malhotra’s influence led to concerns about potential threats to the committee’s work. The member said, “Rather than prolonging this investigation, we submitted a clear report recommending an investigation against Malhotra and others.”

Controversial businessman Malhotra, Senior Vice President of the Nepal Chamber of Commerce, has long been at the center of allegations involving illegal gold trading and smuggling. His ties to the underground economy date back to 1998, when a parliamentary special committee recommended further investigation into his role in gold smuggling activities. Despite this, Malhotra’s influence has shielded him from scrutiny.

The government has entrusted Malhotra with managing and operating crucial airport services in Nepal for the next 30 years, despite his repeated connections to gold and foreign currency smuggling. Malhotra’s involvement in airport operations dates back to 1998, and his name has surfaced in several investigations related to smuggling activities over the years.

Notably, during 1995, Malhotra was a central figure behind a notorious gold smuggling network operating through Nepal’s airports, especially during the tenure of then-Home Minister Bam Dev Gautam. A report prepared by a parliamentary committee, which was formed in 1998 under the leadership of Member of Parliament Pari Thapa, highlighted Malhotra’s role in facilitating these illegal activities, along with his ongoing involvement as a middleman in various smuggling operations. Despite mounting evidence, Malhotra continues to wield significant influence, leaving authorities struggling to fully expose his criminal empire.

The report’s current location remains unclear, though a committee member speculated that it is likely held by the home ministry. Despite changes in government and at least three different home ministers since the report’s submission, the recommendations for investigating Malhotra and others have not been implemented. The government filed a case against Poddar and other suspects in the Morang District Court. Poddar was initially released on bail of Rs 1 million but was later acquitted. At the time, the 33 kilograms of gold remained missing, leading to the court’s inability to convict anyone for smuggling. However, convictions were made in the case of Sanam Shakya’s murder.

The government prosecutor’s office filed a case with the District Police Office, Morang, on April 19, 2018, concerning the disappearance of 33 kilograms of gold and the murder of Sanam Shakya. Charges were brought against 63 individuals for organized crime, kidnapping, hostage-taking, and dereliction of duty. In court, Poddar recanted his earlier statement, claiming it was coerced by the investigation team and police.

Malhotra’s company, IMS Airport Services, continues to operate within Tribhuvan International Airport, managing the new arrival hall and parking lot. Security agencies have raised concerns about the risks posed by leasing sensitive areas of the airport to a controversial businessman like Malhotra. Additionally, individuals close to him have obtained licenses to run shops in the sterile area of the international airport, raising further questions about the influence of Malhotra’s network and the lack of oversight in granting such permissions.

Despite numerous allegations and a comprehensive investigation, the case remains unresolved. The 33 kilograms of gold has yet to be recovered, and the lack of accountability continues to undermine public trust in law enforcement and the judicial process. The political connections and financial influence of individuals like Malhotra have created significant obstacles to justice, leaving the case as a glaring example of impunity in Nepal’s fight against organized crime.

What are the key dates, and how did the 33.5 kg gold smuggling case unfold?

On a brisk morning in early 2018, Nepal woke to news that seemed pulled straight from a crime thriller. The discovery of a massive gold smuggling racket—33.5 kilograms worth—unraveled a tale of greed, corruption, and systemic failure. What started as a police investigation quickly spiraled into one of Nepal’s most complex criminal cases, implicating high-ranking officials, exposing institutional rot, and leaving behind a trail of arrests, deaths, and unanswered questions.

The saga began with the smuggled gold vanishing into thin air, and suspicions quickly fell on an elaborate network operating within Nepal’s borders. The high stakes, however, proved too much for the police to handle effectively. Their investigation, riddled with inefficiencies and whispers of complicity, forced the government to step in. The case was transferred to the home ministry, which formed a high-level committee under Joint Secretary Ishwar Raj Paudel. The probe soon revealed an intricate web of power and profit, implicating 293 individuals, including senior police officials, customs staff, and shadowy figures in the smuggling underworld.

February 5, 2018: A suicide or a warning?

The first sign that something was deeply amiss came with the death of Sanu Ban, a technical employee of Thai Airlines and a critical cog in the smuggling network. Ban had transported the gold from Tribhuvan International Airport but was reportedly robbed en route. Under pressure from Gore, the alleged smuggling kingpin, Ban endured violent interrogation before crawling under a moving tractor at TIA, taking his own life. Initially dismissed as a “tractor accident” in police bulletins, the incident would later be reexamined as a critical piece of the smuggling puzzle.

April 22, 2018: The first domino falls

The investigation picked up pace when former Deputy Inspector General (DIG) Govinda Niraula was arrested. Niraula, who had served as TIA’s police chief, was linked to the smuggling ring. His arrest marked the beginning of a cascade of detentions that shook the police force to its core. Alongside Niraula, Senior Superintendent of Police (SSP) Dibesh Lohani, Deputy Superintendent of Police (DSP) Prajit KC, and Sub-Inspector (SI) Bal Krishna Sanjel were recalled to police headquarters for questioning.

April 24, 2018: Cracks widen

The investigation expanded to include SP Bikash Raj Khanal of the Makwanpur District Police Office and DSP Sanjay Raut of the Itahari Area Police Office. Summoned to the home ministry for statements, Khanal was immediately sent to judicial custody. Raut, however, fled midway through questioning, only to resurface later under mounting pressure. Both officers were found to have maintained regular contact with Gore, further entangling them in the smuggling scandal. As the investigation progressed, the Morang District Court remanded several suspects, including Raut and Khanal, into custody on charges of organized crime and murder.

April 27, 2018: An international fugitive

Interpol issued a diffusion notice for Gore, who had reportedly fled abroad. Investigators discovered that Gore had offered a police officer Rs 50 million to help conceal a dead body linked to the smuggling ring. SSP Lohani claimed he had only feigned acceptance of the bribe to set a trap for Gore—a defense that did little to mitigate the fallout. Meanwhile, DIG Gyan Bikram Shah was found to have held a secretive 30-minute meeting with Niraula, Khanal, and Raut. The contents of their conversation remain undisclosed, deepening the intrigue surrounding the case.

April 29, 2018: The net tightens

By the end of April, DSP Prajit KC was detained after inconsistencies emerged in his statements. SSP Shyam Khatri, another suspect, evaded arrest, but the police had by then detained 28 individuals. The toll of the investigation began to weigh heavily: two suspects committed suicide, and one was murdered.  Sanu Ban’s death had been followed by that of Sanam Shakya, killed under mysterious circumstances. Prem Raj Chaudhary, another suspect, died in police custody. These deaths cast a grim shadow over the investigation, raising questions about the methods and motives of those involved.

For many Nepalis, the case served as a grim reminder that beneath the surface of law and order lies a far murkier reality. The 33.5 kilograms of gold may have vanished, but its weight continues to press on a nation still searching for answers. Yet, momentum faltered. After controversial businessman Deepak Malhotra’s name surfaced in the investigation, pressure mounted. The case was quietly shifted to a district court, and the high-level probe committee disbanded without final action. In the end, only a few small operators were convicted and jailed. The real traffickers — the so-called “big fish” — escaped justice, protected by a web of power, influence, and silence. What had begun as Nepal’s biggest gold smuggling investigation ended as another chapter in a long history of lost opportunities — a scandal that briefly promised accountability but ultimately delivered none.

May 2, 2018: Formal charges filed

The government formally filed charges against 63 individuals at the Morang District Court. The allegations ranged from organized crime to murder, kidnapping, and the illegal trade of gold. Among those charged was SSP Dibesh Lohani, whose involvement underscored the scandal’s reach into the upper echelons of law enforcement.

The gold smuggling case remains one of Nepal’s most notorious criminal investigations, not just for its scale but for the systemic vulnerabilities it exposed. The smuggled gold itself became almost secondary to the revelations of collusion and corruption within the institutions meant to uphold the law.

Gore’s escape left a bitter aftertaste, symbolizing the elusiveness of accountability. While the arrests and deaths punctuated the investigation, they also underscored the fragility of Nepal’s justice system when faced with entrenched networks of power and profit.

Nepal’s 33.5 Kg gold smuggling scandal: A big start, a failed finish

In early May 2018, Nepal was gripped by a scandal that exposed deep cracks in the country’s security system. The smuggling and disappearance of 33.5 kilograms of gold in Kathmandu became a national obsession after investigations revealed the involvement of high-ranking police officials. On June 6, 2018, Home Minister Ram Bahadur Thapa, addressing a press conference at the Ministry of Home Affairs, vowed swift action. “With every step of the investigation, new truths are unfolding. Involvement of new persons is being found. Let us hope to catch some big fish here,” he declared.

But the “big fish” were never caught. Despite uncovering Nepal’s largest gold smuggling racket at the time — and the glaring security vulnerabilities it exposed at Tribhuvan International Airport (TIA)— the investigation stumbled. Years later, many of the real perpetrators remain untouched by the law.

After seeing the high profile names in the probe  report submitted on August 2, 2018 by the high-level probe committee formed by the then government in the case of 33.5 kg gold smuggling and the Sanam Shakya murder case has been missing.  The investigation committee submitted a 773-page report on organized gold smuggling to the then Prime Minister KP Sharma Oli on August 2, 2018. In the report prepared by the committee of which Paudel was the coordinator, it was concluded that gold was smuggled through the TIA 521 times since July 2015 to April 2018.

What is the 33.5 kg gold smuggling case?

The “33kg Gold Smuggling Case” has become one of Nepal’s most notorious criminal sagas, exposing a vast transnational smuggling racket and a web of corruption stretching from Kathmandu’s airport to high-ranking officials. On January 23, 2018, a haul of 33.5 kilograms of gold, reportedly owned by an Indian businessman, arrived on a FlyDubai flight from the UAE. Two airport staff members, Punya Prasad Lama and Sanu Ban, covertly received the contraband, bypassed customs, and began transporting it to its intended destination.

However, their plans unraveled when they were ambushed in Anamnagar by a group posing as police officers who seized the gold. The theft triggered a chain reaction within the smuggling network—a cartel suspected of moving an estimated four tons of gold worth Rs 17 billion over four years. This case would ultimately expose a ruthless underworld, the murder of an insider, and complicity within law enforcement.

How was the racket exposed?

The unraveling began with betrayal. After the robbery, Gore, the leader of the smuggling network who was in Kolkata at the time, rushed back to Kathmandu to retrieve the stolen gold. Gore’s response was brutal; he interrogated his own operatives, resorting to physical torture to extract information.

The situation spiraled when one of the tortured members, Shakya, died from excessive electrocution during the interrogation. Panicked, Gore sought help from police Sub-inspector Balkrishna Sanjel, an ally at the Metropolitan Police Crime Division, to dispose of the body. However, the plan hit a snag when DSP Prajit KC intervened, offering assistance in exchange for a hefty bribe of Rs 20 million.

Distrustful, Gore fled to India, leaving Tek Raj Malla to handle the crisis. In a twist of events, Sanjel and KC tipped off the Morang District Police about the murder. This led to the arrest of several operatives, uncovering the murder and the smuggling operation. The arrests spurred a high-level investigation, implicating senior police officials and influential businessmen.

What does this case reveal?

The 33kg Gold smuggling case is more than a tale of smuggling—it’s a reflection of systemic corruption, weak institutional oversight, and the dangerous interplay between crime and power. The case has led to the arrest of high-ranking officials, implicated members of law enforcement, and raised critical questions about governance and accountability in Nepal.

As investigations continue, this case remains a litmus test for Nepal’s resolve to confront organized crime and restore public trust in its institutions.

Who are the security officers accused of facilitating the racket?

The gold smuggling racket operated with alarming ease, thanks to a network of complicit security officials. Among the accused are four active police officers from the Metropolitan Police Crime Division, including DSP Prajit KC, Sub-inspector Balkrishna Sanjel, and Division Chief SSP Dibesh Lohani. These officers are suspected of aiding the smuggling racket and facilitating its operations, as evidenced by their alleged involvement in negotiating bribes and offering logistical support. Sub-inspector Gajendra Rawal has also been linked to Gore, the mastermind of the smuggling syndicate.

While some officers claimed they intended to apprehend Gore, Sanjel’s extensive past and present connections with him cast doubt on their motives. Adding to the controversy, four retired officers, including former SSP Shyam Khatri, were implicated in earlier smuggling operations. Khatri, infamous for his role in facilitating the racket, allegedly helped smuggle 500kg of gold before being reassigned after his 2017 arrest. Former DIG Govinda Niroula, SP Bikash Raj Khanal, and DSP Sanjay Raut have also been named as accomplices in the racket.

How did the gold pass undetected through the airport?

The racket exploited glaring vulnerabilities in Nepal’s airport security. Gold smugglers used their connections with on-duty police officers and airport staff to bypass customs entirely. These officers provided carriers with airport passes, granting unrestricted movement. Smuggled gold, often hidden in airplane restrooms or other concealed compartments, was retrieved by trusted staff and discreetly moved into private vehicles parked in secured areas.

In his testimony, Gore revealed the use of a “third-line” smuggling system, where senior security personnel played pivotal roles in ensuring the contraband evaded scrutiny. Officers stationed at the airport received the gold directly and transported it outside, evading scanners and customs officials entirely.

Where was the smuggled gold taken?

Once the gold exited the airport, it was transported to predetermined locations in Kathmandu. From there, the loot was divided among local investors, while the bulk of it was smuggled into India via various border routes. The operation relied on a sophisticated network of carriers, ensuring smooth transit across borders and complicating efforts to trace the gold.

Who were the major investors and helpers of the racket?

The smuggling operation was fueled by a powerful nexus of Nepali and Indian businessmen with deep pockets and extensive networks. Mohan Kumar Agrawal, a Nepal-based Indian businessman, is believed to have the largest stake in the racket. Agrawal remains at large, along with his alleged associates, Bimal Poddar and Raj Kumar Agrawal, both Indian nationals with substantial real estate investments in Nepal.

Other key figures include Rajendra Kumar Shakya of RK Jewelers, restaurateur Akbar Shah, and businessmen Istiyaz Uddin and Raj Kumar Daruka. Bhujung Gurung, a former central committee member of the Rastriya Prajatantra Party, played a significant role by leveraging his airport connections to secure clearances. His brother-in-law, Tsering Wangdel Ghale, also benefited from commissions for facilitating the smuggling.

Where was all that gold?

The whereabouts of the smuggled gold was shrouded in mystery. In December 2018, the Directorate of Revenue Intelligence (DRI) in Kolkata seized 33kg of gold at the Dankuni Toll Plaza on the Delhi-Kolkata Highway. The gold was confiscated from two Nepalis, Hem Prasad Sharma and Rakesh Prasad, who are under investigation by Indian authorities but unable to verify that was from Nepal.

While Nepali investigators suspect this gold might be the same consignment robbed in Anamnagar, there is no conclusive evidence to confirm the link. Conflicting testimonies from Gore and other operatives have only deepened the intrigue. Gore alleged that Lama and Ban, the carriers, claimed to have been robbed by individuals associated with Gurung and Ghale. However, some investigators remain skeptical, speculating that the gold may never have made it to Anamnagar at all.

This case is a tangled web of crime, corruption, and collusion that continues to challenge law enforcement on both sides of the border.

Was the racket exposed before?

Yes, the gold smuggling racket had surfaced earlier. On January 5, 2017, the Central Investigation Bureau (CIB) of Nepal Police seized 33 kg of gold from Gopal Bahadur Shahi just as he was about to exit TIA in a taxi. The airport’s then-in-charge, SSP Shyam Khatri, was arrested a month later for his role in facilitating the smuggling. However, Khatri was released on bail after depositing Rs 200,000 with the Kathmandu District Court.

Subsequent investigations have since established that this incident was linked to Gore’s sprawling smuggling network. In his court testimony, Gore revealed that Khatri charged Rs 50,000 per kilogram of gold smuggled, leveraging his position to bypass airport security. This early detection exposed only a fragment of a far-reaching operation that continued to thrive, exploiting gaps in oversight and collusion within security systems.

The case highlighted systemic vulnerabilities and set the stage for what would become Nepal’s largest gold smuggling scandal, underscoring the network’s ability to operate undeterred, even after being exposed.

Who are the security officers accused of facilitating the racket?

Four active police officers, including Division Chief SSP Dibesh Lohani, and others like Sub-inspector Gajendra Rawal, have been accused of direct involvement with the smuggling racket. Former SSP Shyam Khatri, arrested in 2017, is believed to have facilitated the smuggling of 500 kg of gold during his tenure. Retired officers such as DIG Govinda Niroula and SP Bikash Raj Khanal were also implicated for using their positions to bypass airport customs. Investigators have questioned their intentions, as evidence of collusion with Gore, the mastermind, continues to mount.

How did the gold pass undetected through the airport?

The smuggling network exploited lax airport security and insider connections. Smugglers used airport passes provided by colluding officers to bypass scanners and customs. Gold was often hidden in restrooms or transported directly to the cabins of corrupt officials, who then carried it out using private vehicles. The scheme, termed “third-line smuggling,” relied on close coordination between security personnel and airport staff, ensuring the gold never encountered standard screening processes.

Where was the smuggled gold taken?

Once the gold exited the airport, it was delivered to predetermined addresses where it was divided among Nepali investors. A significant portion of the contraband was then smuggled to India via porous border points. Carriers frequently changed routes and methods to evade detection, often utilizing smaller towns and lesser-monitored checkpoints to transport the gold into India’s lucrative market.

Who were the major investors and facilitators in the racket?

The smuggling operation was bankrolled by a network of Nepali and Indian businessmen. Mohan Kumar Agrawal, a Nepal-based Indian businessman, is believed to have had the largest stake and remains at large. Other key figures include Indian businessmen Bimal Poddar and Raj Kumar Agrawal, as well as Nepali players like Rajendra Kumar Shakya, restaurateur Akbar Shah, and Istiyaz Uddin. Former politician Bhujung Gurung and his brother-in-law Tsering Wangdel Ghale also used their airport connections to facilitate the smuggling.

Where was the gold?

On December 7, 2018, Indian authorities seized 33 kg of gold at Dankuni Toll Plaza in West Bengal. While speculated to be the same gold stolen during the Anamnagar incident, investigators remain uncertain about its origins. Some members of the smuggling network, including Gore’s associates, are in custody in India, but the gold’s ultimate fate and whether it ties to the larger operation in Nepal remain unresolved.

Do the government and police have a plan to end gold smuggling?

Authorities claim enhanced airport security and stricter monitoring at border points have curbed large-scale gold smuggling. Yet, the confiscation of 115 kg of gold in a single year between February 2018 and February 2019, along with ongoing arrests, suggests that smuggling persists. Smaller rackets and porous borders remain a challenge, with law enforcement’s capacity to prevent illicit activities being continually tested.

What was the court’s ruling in the notorious 33-kilogram gold smuggling and murder case?

When the gold smuggling case reached its conclusion, only a few operators were imprisoned, while all other accused individuals were released. The investigation into the case was inadequate, failing to reach the top levels of involvement, and neither the prosecution nor the final phase of the trial were handled properly. Despite being highly publicized and dominating media coverage for months, the case ultimately ended in dismissal.

In contrast, the Morang District Court sentenced six individuals involved in the infanmpous 33.5-kilogram gold smuggling case and the murder of Sanam Shakya to life imprisonment. These six defendants—Tekraj Malla Thakuri, Lhakpa Sherpa, Mohan Kafle, Narendra Karki, Bhojraj Bhandari, and Gore—were found guilty by the bench of Judge Bharat Lamsal. Additionally, Rajan Kumar, an Indian national, was sentenced to three years in prison, Madan Ghimire received a six-month sentence, and Dawa Tsering Lama was given a one-year sentence.

However, 48 others, including senior police officers like Govinda Prasad Niraoula, Sanjay Bahadur Raut, Prajit KC, and Balkrishna Sanjel, along with Gore’s wife, Narbada Kharel, were acquitted. The police personnel charged in the case—DIG Dibesh Lohani, former DIG Govinda Prasad Niraula, former SSP Shyam Bahadur Khatri, SP Bikash Raj Khanal, SP Prajit KC, Sub Inspector Bal Krishna Sanjel, and Head Constables Amar Bahadur Thapa Magar and Bishnu Thapa—were all given a clean chit.

What are the other significant gold smuggling cases after the 33.5 kg gold smuggling?

Gold smuggling in Nepal has evolved into a deeply entrenched and complex phenomenon, marked by intricate networks, creative concealment methods, and international involvement. Despite publicized crackdowns and stringent regulations, smuggling persists, undermining Nepal’s financial system and sovereignty. In the years since the infamous 33.5 kg gold smuggling case of 2018, the scale and audacity of such operations have only grown. Recent cases not only expose loopholes in enforcement but also suggest an alarming resilience within smuggling syndicates.

The 33.5 kg gold smuggling case in 2018 marked a watershed moment in Nepal’s history. It unveiled a vast underground network of smugglers, facilitators, and complicit officials. Yet, it was merely a symptom of a more systemic issue. The arrests and seizures that followed this case did not deter future smugglers. Instead, new methods, networks, and players emerged, often with international connections, highlighting the adaptive nature of these illicit operations.

The scale of gold smuggling has increased exponentially, with more sophisticated methods and diverse actors, including foreign nationals, playing pivotal roles. From concealing gold in motorcycle brake shoes to using electronic payment gateways for illicit transactions, the smuggling apparatus has become both technologically advanced and resourceful.

One of the most striking examples of the persistence of gold smuggling is the story of Kushang Lama, a truck driver arrested in March 2025. Lama was apprehended in Jhor, on the outskirts of Kathmandu, with a significant stash of foreign currency meant to be exchanged for gold in Kerung, China.

Lama’s arrest was not his first brush with the law. In 2016, he was caught transporting 7 kilograms of gold hidden inside an air filter box. After serving a five-year sentence, he resumed operations, demonstrating the cyclical nature of smuggling activities in Nepal. The intricate modifications to Lama’s truck, including false bottoms and a garage makeover to alter its appearance, illustrate the lengths to which smugglers go to evade detection.

A massive breakthrough occurred in July 2024 when 60 kilograms of gold was discovered concealed in motorcycle brake shoes at TIA. This seizure unveiled a far-reaching smuggling network involving fake companies and sophisticated logistics.

The investigation revealed that gold worth over Rs 32 billion was smuggled by this syndicate, often hidden in electrical equipment and motorcycle parts. It implicated high-profile individuals, including foreign nationals and politically connected figures. Daoxin Wang, a Chinese national, was identified as the mastermind behind the operation, with his syndicate creating fake companies to facilitate smuggling.

The group’s operations spanned multiple locations, with smelting factories in Tokha, Lazimpat, and Patan, demonstrating a well-oiled infrastructure. The investigation also uncovered the use of electronic wallets like Paywell Nepal Pvt Ltd and Easy Payment Service Pvt Ltd for illegal transactions, raising concerns about regulatory oversight in Nepal’s fintech sector.

Nepal Rastra Bank, the country’s central monetary authority, introduced electronic wallets to reduce cash dependency. However, these platforms inadvertently became tools for illegal transactions. Investigators found that Paywell and Easy Payment conducted illicit transactions worth Rs 123 billion between April 2023 and June 2024.

By bypassing transaction limits and falsifying financial records, these wallets facilitated the movement of smuggled gold. For instance, over Rs 61.5 billion was deposited in Paywell wallets through vouchers rather than bank transfers. This exploitation of regulatory loopholes highlights the need for stronger oversight and better technology integration to detect anomalies in real-time.

What makes gold smuggling cases in Nepal particularly alarming is the involvement of influential figures. In the July 2024 case, former Speaker Krishna Bahadur Mahara’s son and other prominent individuals were linked to the syndicate. While Mahara himself was not formally charged, his connections to the smuggling network added a layer of complexity and controversy to the investigation.

Similarly, the sons of former Vice President Nanda Bahadur Pun and Mahara were questioned during the probe, further indicating the penetration of criminal activities into the upper echelons of Nepali politics.  Despite numerous allegations connecting individuals linked to Maoist leader Barshaman Pun to gold smuggling operations, authorities have yet to launch a thorough and effective investigation.

Gold smuggling not only tarnishes Nepal’s international image but also exerts a heavy toll on the economy. The volume of gold smuggled in recent years is comparable to the total legal imports of the precious metal. In the fiscal year 2022/23, Nepal imported gold worth Rs 39.93 billion, while smugglers reportedly trafficked nearly equivalent amounts.

This parallel economy impacts foreign currency reserves and disrupts legitimate trade channels. The illicit funds generated through smuggling are often funneled into other criminal activities, creating a vicious cycle of corruption and crime.

Despite significant seizures and arrests, these cases barely scratch the surface of the smuggling empire. Police investigations often stall at mid-level operatives, leaving the true masterminds untouched. Moreover, the judiciary’s inefficiency and corruption further enable the cycle to continue.

The smuggling industry thrives on its ability to adapt to new challenges. From using innovative concealment methods like motorcycle brake shoes to leveraging fintech platforms for money laundering, smugglers have consistently stayed ahead of the authorities. Nepal’s fight against gold smuggling is far from over. The cases of Lama, Wang, and others serve as stark reminders of the challenges ahead. Only with robust governance and international cooperation can the nation hope to dismantle this illicit empire and restore integrity to its borders and financial systems.

Is Nepal becoming a hub for transnational gold smuggling?

Gold smuggling in Nepal is not a new phenomenon; it dates back to the Panchayat era of the 1970s and has evolved with every political transition. Whether under monarchy, democracy, or republic, successive governments have failed to root out corruption or dismantle entrenched criminal networks.

The repeated involvement of political elites and bureaucrats has made the issue deeply systemic rather than episodic. As long as political patronage shields key figures, enforcement agencies face structural limitations in dismantling the networks that profit from illicit trade.

A string of high-profile gold smuggling cases is raising alarm about Nepal’s growing role as a transit point for illicit gold trade. The series of gold seizure is just a stone’s throw from Kathmandu’s TIA.

Even before the 100-kilogram gold scam, Nepal had seen its share of smuggling operations. In 2017, 33.5 kilograms of gold vanished at the TIA, and despite efforts to investigate, the gold remains missing. Recent reports also allege that a senior Maoist leader may have been involved in smuggling gold hidden in electronic cigarettes. Now, disturbing images and videos are circulating on social media showing suspected gold smugglers with high-profile Maoist figures.

The question on everyone’s mind is: how did such a massive consignment of gold slip past the airport’s security? TIA is equipped with sophisticated systems designed to detect even small items, yet large shipments continue to evade detection. The credibility of the airport’s security is being questioned, especially since a company with a known history of smuggling has been entrusted with managing key security zones.

Gold smuggling in Nepal is not a new issue—it dates back to the Panchayat era (1960-1990), and despite political changes, the illicit trade has continued unabated. Though small quantities of smuggled gold are occasionally seized, the key players rarely face justice, with only the lower-level peddlers being punished. There’s a growing concern that these seizures are merely meant to give the appearance of government action, without targeting those truly behind the operations.

Nepal’s reputation on the international stage is suffering as it becomes more widely recognized as a hub for gold smuggling. Most of the gold smuggled into Nepal comes from China, only to be sent onward to India. Rajendra Lingden, chairman of the Rastriya Prajatantra Party, stated, “This small quantity of gold was seized just to show it to someone. Nepal is becoming a transit point for gold smuggling. It’s only after international pressure that Nepal took action.”

The failure to detect such large volumes of smuggled gold raises suspicions of collusion between smugglers, customs officials, and other powerful figures. Hemanta Malla Thakuri, former deputy inspector general of Nepal Police, emphasized that such an operation is only possible with inside help, describing gold smuggling as an organized international crime.

Political leaders are also weighing in. Nepali Congress lawmaker Sunil Sharma called for the resignation of then-Deputy Prime Minister Narayan Kaji Shrestha and then-Finance Minister Prakash Sharan Mahat, whose ministries oversee the customs and police forces at TIA. Meanwhile, opposition parties like the CPN (UML) accused the government of shielding the real masterminds, demanding an independent investigation into the smuggling ring.

Despite mounting public pressure, the government has dismissed calls for an independent high-level inquiry, citing the ongoing investigation by the Department of Revenue Investigation (DRI), a government agency. However, skepticism remains high, given the involvement of high-ranking politicians. With the integrity of the DRI in question, it’s uncertain whether the investigation will be impartial.

The growing problem of gold smuggling is not just a matter of national security; it’s also a matter of Nepal’s standing in the global community. The lack of accountability in these cases risks further tarnishing Nepal’s image and could have lasting economic and security consequences. Until the true masterminds are brought to justice, Nepal’s role as a smuggling hub will continue to cast a long shadow over its future.

Why is gold smuggling so widespread in Nepal?

Gold smuggling has flourished in Nepal due to a combination of economic, geographic, and institutional factors. The country’s open borders with India and China make it an ideal transit route for smugglers operating across Asia. High import taxes, price disparities, and restrictions on legal imports create lucrative incentives for traffickers. When legal supplies become limited or expensive, demand naturally shifts toward illicit sources.

Culturally, gold plays an important role in Nepali society. It is viewed as a symbol of wealth, status, and financial security, especially during weddings and religious ceremonies. This cultural demand persists regardless of economic conditions. With an unstable economy and weak currency, many Nepalis also consider gold a safe investment, further increasing demand and encouraging smuggling.

The scale of smuggling is staggering. During the wedding season, national demand for gold reaches over 50 kilograms per day, but only 20 kilograms come from legal imports, meaning that the majority of gold circulating in the market likely originates from smuggling.

These figures illustrate how deeply entrenched the illegal trade has become. Nepal’s role has expanded from being a consumer of illicit gold to a transit corridor for regional trafficking networks, moving thousands of kilograms of gold toward India each year.

Gold smuggling undermines Nepal’s formal economy by eroding tax revenues, distorting market prices, and disadvantaging legitimate jewelers. The reliance on illegal gold sources inflates prices, harms transparent businesses, and weakens financial stability. Moreover, large-scale illicit transactions through unregulated payment channels pose risks to the national banking system.

Economists warn that such underground trade destabilizes foreign exchange reserves, contributes to capital flight, and fosters corruption. It also damages Nepal’s international reputation for financial integrity, complicating foreign investment prospects.

How does Nepal’s geography contribute to the smuggling network?

Nepal’s strategic yet vulnerable location between two of the world’s largest gold markets — India and China — has made it a key link in regional smuggling chains. Gold often enters Nepal through northern routes from China, including Kerung–Rasuwagadhi, Tatopani–Khasa, Olangchung Gola, and Solukhumbu, before being funneled across the porous southern border into India, where gold demand is vast and import restrictions are strict.

This cross-border network exploits Nepal’s limited customs infrastructure, under-resourced checkpoints, and corruption among officials. The geography effectively turns Nepal into a transit hub, with only a fraction of the smuggled gold staying within the country for local consumption.

Who are the key players involved in gold smuggling operations?

Investigations by the CIB have revealed a sophisticated, multi-layered network involving local traders, international traffickers, and complicit officials. Recent findings exposed five fake import companies that concealed gold in imported electronic items like vapes and motorcycle parts, mainly from China, Hong Kong, the UAE, and Singapore.

Digital payment platforms were allegedly used to move billions of rupees through unregulated transactions, bypassing Nepal Rastra Bank’s oversight. Reports also suggest the involvement of politicians, bureaucrats, and customs officials, who allegedly protect or facilitate smuggling rings in exchange for kickbacks. While numerous carriers or “mules” are arrested, the masterminds — often politically connected — typically evade justice.

What methods are used to smuggle gold into Nepal?

Gold is trafficked into Nepal through a range of deceptive and evolving methods. Common techniques include hiding gold inside electronic devices, vehicle parts, and consumer goods, or using human carriers (mules) — often Nepali migrant workers returning from the Gulf countries — to carry small, legally permissible quantities.

Once inside Nepal, the smuggled gold is distributed through informal trading networks and sold to jewelers who prefer cheaper, untaxed gold. The CIB has identified extensive use of digital payments and underground banking systems to finance these operations, allowing smugglers to move large sums of money anonymously and efficiently.

Why are the main culprits rarely caught?

Despite numerous seizures annually, most arrests involve low-level carriers rather than the masterminds who finance and coordinate smuggling rings. Political protection, security lapses, bureaucratic corruption, and interference in investigations have made it difficult for law enforcement to reach those at the top.

What measures are being taken to combat the problem?

Authorities have intensified surveillance and enforcement efforts. The Nepal Police, CIB, and Department of Revenue Investigation are conducting joint operations, using digital forensics and intelligence networks to track smuggling routes and financial flows. Reward systems for whistle-blowers have been introduced to encourage public cooperation.

However, experts argue that piecemeal enforcement is not enough. They call for investment in advanced detection technology, cross-border intelligence sharing with India and China, and stricter accountability within customs and police departments. Without addressing corruption and strengthening institutions, smuggling is likely to persist despite repeated crackdowns.

What is needed for a lasting solution?

A durable solution requires a comprehensive and coordinated strategy. Beyond enforcement, Nepal must reform its customs system, digitize border surveillance, and strengthen inter-agency cooperation. Transparency in gold imports, international intelligence-sharing, and strict penalties for political interference are essential.

Equally important is addressing the economic roots of smuggling — by revising import taxes, stabilizing the economy, and improving legal supply mechanisms. Without these structural reforms, gold smuggling will remain a persistent symptom of Nepal’s broader governance and institutional weaknesses.