Nepal Police have uncovered what they describe as a widespread and organised fraud within the country’s trekking and mountaineering industry, where rescue operators, helicopter companies and tour operators allegedly staged fake emergency evacuations to extract millions of dollars from insurance companies.

The Central Investigation Bureau (CIB) of Nepal Police said on Sunday that it had arrested operators from three companies accused of fabricating emergency helicopter rescues involving foreign tourists in high-altitude regions.

According to the CIB, Mountain Rescue Service Pvt Ltd falsely recorded 171 rescues out of 1,248 operations and claimed more than $10 million in insurance payouts. Similarly, Nepal Charter Service Pvt Ltd was found to have staged 75 fake rescues among 471 operations, with claims totalling $8.2 million. A third company, Everest Experience and Assistance Pvt Ltd, allegedly carried out 71 suspicious rescues out of 601 cases, claiming $1.153 million.

CIB chief Manoj KC said the investigation was launched following complaints from insurance companies and reporting by domestic and international media that raised concerns about the integrity of helicopter evacuations in Nepal’s trekking sector.

In 2018, Traveller Assist—an organisation claiming to act as underwriters for three insurance companies—said its investigations showed that 35% of the 1,600 helicopter rescues carried out in Nepal that year were fraudulent, costing insurers up to $4 million. However, instead of acting on the findings, the government at the time launched an investigation into Traveller Assist for allegedly “harassing Nepali companies.”

Traveller Assist had also warned the Ministry of Tourism that unless bogus rescue scams were stopped by mid-February, it would stop issuing travel insurance policies for Nepal on behalf of its clients.

Despite these warnings, emergency rescue companies, helicopter operators, private hospitals and travel agencies—allegedly working in collusion—were able to influence government decisions in their favour. Although a government panel was formed to prepare guidelines to regulate the adventure tourism industry, frequent changes in government meant that policies lacked continuity. As a result, the issue that tarnished Nepal’s tourism image was pushed to the back burner.

The CIB said the current investigation was completed in just two and a half months.

“What began as a suspected financial irregularity revealed organised and systematic fraud after two and a half months of intensive investigation,” KC said at a press conference in Kathmandu. “We found evidence of multiple insurance claims for single rescues, charter flights being presented as emergency evacuations, and fake medical bills issued with the involvement of private hospitals.”

KC said flight records showed patterns inconsistent with genuine rescue operations. In some cases, a single helicopter flight was billed as multiple emergency evacuations. For example, a flight from Kathmandu to Lukla, normally costing around $2,500, was billed for as much as $31,000 by issuing multiple invoices for the same journey.

Police said complaints of fraudulent rescues are still being received.

Six people were arrested on Sunday after court-issued warrants. Those arrested include Jayaram Rimal and Vivek Pandey of Mountain Rescue Service; Rabindra Adhikari and Bibek Raj Thapaliya of Nepal Charter Service; and Mukti Pandey and Subhash KC of Everest Experience and Assistance.

The suspects are being investigated for crimes against national interest, organised criminal profiteering and money laundering. The CIB said further arrests could follow as the investigation continues.

Nepal, home to eight of the world’s 14 highest mountains, attracts tens of thousands of foreign trekkers each year. Helicopter evacuations—often covered by overseas insurance policies—remain a critical but increasingly controversial part of the country’s adventure tourism industry.