Nepalese authorities have arrested six senior executives from three prominent mountain rescue agencies, accusing them of orchestrating a large-scale insurance fraud scheme involving hundreds of staged helicopter evacuations of foreign trekkers from the Himalayas. Investigators say the alleged racket siphoned off nearly $20 million from international insurance companies and inflicted serious reputational damage on Nepal’s vital tourism industry.

A court in Kathmandu on January 26 granted police five days of custody to question the suspects, who were detained as part of an expanding investigation led by the Central Investigation Bureau (CIB) of the Nepal Police. Prosecutors allege the executives systematically arranged unnecessary helicopter “rescues” from high-altitude trekking regions, supported by falsified medical reports and flight documents, and then billed the costs to foreign travel insurers.

Tourism is a cornerstone of Nepal’s economy, accounting for a significant share of foreign exchange earnings and employment. The country attracts nearly 1.2 million visitors annually, with roughly 300,000 of them trekking in mountainous regions such as Everest, Annapurna, Langtang, and Manaslu. Helicopter evacuations are an essential and often life-saving service in these remote areas, where altitude sickness, injuries, and unpredictable weather can quickly turn fatal. Authorities say the alleged fraud exploited this system of trust.

According to police, the suspects are believed to have been involved in around 300 fake rescue operations over several years. “In our initial investigation, we found that these companies were involved in around 300 fake rescues,” Shiva Kumar Shrestha, a........

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