RAUTAHAT, July 12: Hundi, an illegal money transfer system, continues to thrive in Nepal’s Madhesh Province, particularly in the districts of Parsa, Rautahat, and Sarlahi. Despite frequent arrests and cash seizures, authorities have failed to curb the growing influence of this underground financial network.
According to data from the District Police Office (DPO), Parsa, four individuals involved in hundi operations were arrested in the district by mid-June of the current Fiscal Year (FY). During this period, authorities seized Rs 3.17 million in illegal funds. In the previous FY, Parsa police had arrested one person and confiscated Rs 4.2 million in hundi-related cash.
Similarly, Rautahat police arrested four suspects by mid-June of the current FY, recovering Rs 1.15 million. Last year, six individuals were taken into custody in the district, with Rs 3.06 million seized.
Nepalis in South Korea, Israel still remitting money thru Hundi
In Sarlahi, police arrested three hundi operators last FY and confiscated Rs 4.18 million. By mid-June this year, two more arrests were made, and Rs 1 million was recovered.
Despite the ongoing arrests, law enforcement admits that controlling this organized and cross-border operation remains a formidable challenge. Just this Thursday, police in Rautahat and Sarlahi apprehended two individuals in possession of over Rs 2.6 million combined.
The DPO Sarlahi arrested Indrajit Prasad Sah, 36, of Malangwa Municipality-2, near the border area of Malangwa Municipality-8, with Rs 1.4 million in cash. He was reportedly entering Nepal from India on a motorcycle with Indian registration number BR 30 K 4009. He was detained in a joint operation by the Armed Police Force (APF) and the Customs Office under the proposed Border Security Unit.
Likewise, in Rautahat, Chandan Pandit, 30, of Khairwa in Ramnagar Rural Municipality-2, was arrested with Rs 928,500 in Nepali currency and INR 215,050 near the border at Gaur Municipality-2. He was also apprehended by the Armed Police Force.
Despite surveillance efforts and inter-agency coordination, the illegal hundi trade continues to operate on both sides of the Nepal–India border, raising serious concerns about financial transparency and law enforcement in the region.
