Two more arrested in Nepal’s ‘Fake Rescue’ scam as probe widens across trekking, aviation, and insurance network

KATHMANDU: Police have arrested two more individuals in connection with Nepal’s widening “fake rescue” fraud in the mountaineering and trekking sector, as investigators say the scheme involved coordinated claims made to foreign insurance companies using staged or exaggerated medical evacuations.

The arrests were made by the Central Investigation Bureau of Nepal Police, which confirmed that 28-year-old Sandeep Tiwari, a representative of Thamel-based Royal Holidays Adventure and Travel Company, and 56-year-old Rajendra Bahadur Singh, a former vice-president of the airline operators’ association, have been taken into custody.

Singh, a resident of Kathmandu Metropolitan City Ward No. 31, was arrested on Wednesday, while Tiwari, from Jwalamukhi Rural Municipality-2 in Dhading, had been detained earlier on Tuesday.

Arrests Push Total Suspects to Nine

According to bureau spokesperson Shiva Kumar Shrestha, the number of individuals arrested in the case has now reached nine.

Those already detained include personnel from trekking companies, rescue service providers, hospitals, Nepal-based representatives of foreign insurance firms, and shareholders or operators of helicopter companies. Investigators say the breadth of arrests indicates the alleged fraud was not isolated but part of a coordinated network spanning multiple sectors tied to Nepal’s high-altitude tourism industry.

How the ‘Fake Rescue’ Scheme Worked

Preliminary investigation findings suggest that the accused falsely reported that foreign trekkers and climbers had suffered serious health complications during high-mountain expeditions.

Based on these claims, helicopter evacuations and medical services were arranged and billed to international travel insurance providers. Authorities say the suspects then allegedly secured large insurance payouts by exaggerating medical conditions, staging unnecessary rescues, or coordinating with service providers to inflate costs.

Police say the accused profited illegally by exploiting Nepal’s reputation as a high-risk trekking destination where emergency evacuations are common and often urgent.

Officials note that helicopter rescues in remote Himalayan terrain are expensive, meaning even a small number of manipulated claims could generate significant financial returns.

Tourism Sector Under Scrutiny

The investigation has raised fresh concerns about oversight gaps in Nepal’s adventure tourism sector, which relies heavily on trust between trekking agencies, airlines, insurers, and rescue services.

Industry insiders say the scandal could damage Nepal’s credibility among international insurers and tour operators if systemic weaknesses are confirmed.

Foreign insurance companies have previously warned about unusually high helicopter rescue claims from Nepal compared to other global trekking destinations. Past industry reviews had already flagged patterns suggesting that some rescues were being encouraged rather than medically necessary.

Possible Wider Crackdown Ahead

Police say the investigation is ongoing and more arrests are possible as financial records, insurance documents, and communication trails are examined.

Authorities are also studying whether the alleged network operated for several years and whether international partners were knowingly or unknowingly involved.

Officials stress that the case is being treated as organized financial fraud with potential implications for Nepal’s tourism brand, aviation oversight, and insurance compliance systems.

Impact on Trekking Reputation

Tourism analysts warn that if the scandal deepens, it could lead to stricter insurance conditions for trekkers visiting Nepal, higher premiums, or tighter scrutiny of evacuation claims.

Some experts say the case may also push regulators to introduce new verification mechanisms for mountain rescues, including independent medical assessments, digital tracking of evacuations, and stricter reporting requirements for helicopter operations.

Police have not ruled out filing organized crime or financial fraud charges depending on further evidence.