Kaski, July 28:  An organized racket involving money changers has been found operating illegal foreign currency transactions in Pokhara. A team from the Gandaki Province Police Office and Kaski District Police arrested three individuals with American dollars, euros, and Nepali rupees, exposing a larger network engaged in unauthorized currency exchange.

"The Nepal Rastra Bank has set clear limits and guidelines on how and for what purpose foreign exchange can be traded. In this case, none of that has been clarified," said Kaski Police Chief SP Shyambabu Oliya.

Those arrested include 45-year-old Rajkumar Budhathoki from Damak-4, Jhapa (residing in Baidam, Pokhara-6); Mahumuddin M. Ahmad of Siddharthanagar-13, Rupandehi; and 43-year-old Khemraj Paudel from Puranchaur, Pokhara-19. Acting on a tip-off, police detained them at 5 p.m. Saturday in Birauta, Pokhara-17.

According to SP Oliya, police confiscated USD 19,600, EUR 3,200, and NPR 4,737,700 in cash. Altogether, the illegal currency exchange amounted to NPR 7,596,900 when converted.

It was revealed that Mahumuddin owns restaurants in Rupandehi and Kaski, while Budhathoki and Paudel operate money exchange businesses in Lakeside, Pokhara. Mahumuddin reportedly handed Nepali currency to money changers in exchange for US dollars and euros.

Police have begun an investigation under the Nepal Rastra Bank Act, 2058. Section 95 of the Act defines unauthorized transactions—including those without a license or that obstruct regulatory procedures—as criminal offenses. Section 96 of the Act allows for penalties of up to three times the amount involved, imprisonment of up to seven years, or both.

People’s News Monitoring Service