Rs. 251.9M unaccounted cash seized from container in Kathmandu

Kathmandu, Mar. 19: Questions have cropped up regarding the source and collection process of the foreign currency—amounting to Rs. 251.9 million seized from Tokha, Kathmandu, around 11:00 pm on Monday. 

While initial reports suggest that the money was intended for purchasing gold, investigators are yet to determine how such a large sum was brought together, according to some police officials.

Kusang Lama, the only individual arrested in connection with the case, who was made public during a press conference on Tuesday by the Kathmandu Valley Crime Investigation Office, Teku, was detained five years ago on charge of smuggling seven kilograms of illegal gold. 

Lama, a permanent resident of Bhotekoshi Rural Municipality-1, Sindhupalchok, was arrested from Jhor of Tokha Municipality-2, Kathmandu.

Earlier, he was released from Nakkhu Prison in December 2021. According to police, four individuals, including Lama, were arrested in the previous case. At that time, Lama was identified as a carrier of illegal gold, but the actual owner of the smuggled gold remained unknown.

Authorities are investigating whether the large amount of euros, dollars and Chinese Yuan were collected within Nepal or brought in from India. Based on information analysis, the police are nearing the conclusion that the foreign currency was meant for purchasing gold, police said responding to queries of the media persons at the press conference.

Officials also suspect that the money could have originated from Indian traders involved in illegal gold transactions.

“We are investigating whether this large sum of foreign currency was brought from India or obtained from selling smuggled gold to Indian businessmen,” said an officer involved in the investigation. “We are still under investigation, and many more things are yet to be confirmed,” said Ramesh Basnet, Senior Superintendent of Police and Chief of the Crime Investigation Office, Teku.

The Rs. 251.9 billion worth of foreign currency was discovered hidden inside a container. Police reports indicate that the truck had been parked in a garage in Swayambhu for nearly 20 days, where it was modified with a false bottom and repainted.

During the initial investigation, Lama claimed that he had taken the container from Thankot and was on his way to Rasuwagadhi to pick up clothing, as instructed by traders. Although the truck (Na 7 Kha 1652) was registered under his mother’s name, he said that his brother had purchased it for him.

“We are currently investigating Lama’s background, financial status, and network of connections,” a police official said. The container was empty from inside while it was heading towards Kerung, China. 

According to SSP Basnet, the operation became successful upon a tip-off. Lama had concealed the money in a false bottom inside the truck’s cabin right side, while the back of the truck was empty.

Authorities have stated that Lama will be handed over to the Department of Revenue Investigation for further legal proceedings along with the seized money. 

Police involved in the operation during the press conference said, "We searched several vehicles in the area. When we stopped this particular truck, the driver seemed nervous. Sensing something unusual, we questioned him further. As he refused to disclose what was inside the truck, we took him into custody and began our investigation, ultimately discovering the hidden cash."

Police confirmed the recovery of US dollars and euros from the truck. Based on today’s exchange rate, the seized amount is valued at Rs. 251.9 million.

He is now being prosecuted under violations of the Foreign Exchange Act.