Cracking down a major organized tourism fraud, the Central Investigation Bureau (CIB) of Nepal Police has arrested six high-profile tour operators and mountain rescue agencies on the charges of designing a large-scale “fake rescue” scam that allegedly defrauded international insurance companies of nearly 20 million US dollar.
During a press conference organized in Kathmandu, CIB Chief and Additional Inspector General of Police Manoj Kumar Kesi revealed the arrests were made after the CIB obtained court-issued warrants based on an extensive investigation into fraudulent helicopter evacuation claims in Nepal’s trekking sector.
The arrested travel operators include Jayaram Rimal and Bibek Pandey of Mountain Rescue Service Pvt. Ltd., Rabindra Adhikari and Bibekraj Thapaliya of Nepal Charter Service Pvt. Ltd., and Mukti Pandey and Subhash KC of Everest Experience and Assistance Pvt. Ltd, according to the CIB. All the arrestees served as directors or senior managers of the respective companies.
The CIB informed that the accused were involved in staging medical emergencies to justify costly helicopter evacuations, which were then falsely claimed from international travel insurance providers. “The investigation has uncovered a well-organised network involved in crimes against the national interest,” pointed out AIG Kesi.
According to the CIB data Mountain Rescue Service Pvt. Ltd. conducted 1,248 rescues, of which 171 were allegedly fake, resulting in insurance claims exceeding $10.3 million. Similarly, Nepal Charter Service Pvt. Ltd. carried out 471 rescues, including 75 fake cases, claiming $8.2 million in insurance, while Everest Experience and Assistance Pvt. Ltd. was found to have conducted 601 rescues, with 71 fraudulent cases, involving insurance claims of $1.15 million. In total, 317 fake rescues out of 2,320 operations were made, with more nearly 20 million US dollar in fraudulent insurance claims, the investigation revealed.
The suspects are being investigated under various charges, including organised crime, criminal profit, money laundering and offences against national interest, revealed the CIB. According to the investigators the scam involved collusion among trekking guides, helicopter operators and medical facilities. In some cases, trekkers suffering from minor altitude-related discomfort were allegedly pressured into helicopter evacuations. In other instances, multiple patients were transported on a single flight but billed separately to different insurance companies at full cost. According to AIG KC fake rescues not only generate illegal profits but also damage Nepal’s international prestige and could jeopardize insurance facilities in the country.
