KATHMANDU: Nepal police have arrested six people linked to three aviation and rescue companies for allegedly staging fake helicopter rescues of foreign trekkers to defraud international insurance firms, authorities said on Sunday.

The Central Investigation Bureau (CIB) said the suspects falsely presented minor altitude-related discomforts as acute mountain sickness, carried out unnecessary evacuations, and submitted fabricated medical bills and documents in coordination with private hospitals.

CIB chief Additional Inspector General Manoj Kumar KC said the arrests followed a two-and-a-half-month investigation into companies Nepal Charter Service, Mountain Rescue Service, and Everest Experience and Assistance.

According to police, Mountain Rescue Service conducted 171 fake rescues out of 1,248 evacuations and claimed about $10.31 million from insurers. Nepal Charter Service carried out 75 fake rescues out of 471, claiming about $8.2 million. Everest Experience and Assistance was linked to 71 suspicious rescues out of 601, with insurance claims totaling $11.04 million.

Investigators said the group also filed multiple insurance claims for single flights, reclassified charter flights as emergency rescues, and paid commissions through intermediaries.

Police estimate the total fraud exceeds 2.9 billion Nepali rupees (about $22 million). KC said further arrests were likely as investigations continue, warning the scam could seriously harm Nepal’s international tourism reputation.