Nepal Police have arrested two figures in the country’s aviation and tourism sector on suspicion of involvement in a scheme to stage unnecessary helicopter rescues of foreign trekkers to claim payments from insurance companies.

The arrests bring the number of people detained in connection with the so-called “fake rescue” scandal to nine, according to a statement issued Wednesday by the Central Investigation Bureau of Nepal Police.

Those taken into custody were Rajendra Bahadur Singh, 56, managing director of Mountain Helicopters Pvt. Ltd., and Sandip Tiwari, 26, an operator of Royal Holidays Adventure and Travel Company Pvt. Ltd.

Singh, a former vice president of the Airlines Operators Association of Nepal, is a prominent figure in tourism sector. He previously served as an aviation expert on a high-level Civil Aviation Sector Reform Committee formed under the government of former Prime Minister KP Sharma Oli. The committee was coordinated by former Justice Anil Kumar Sinha, who now serves as Minister of Tourism and Aviation.

The committee submitted their final report on reforming Nepal’s aviation sector to Prime Minister Sushila Karki on September 28, 2025. Singh was among the committee members during the submission.

On January 25, Jayaram Rimal and Bibek Pandey of Mountain Rescue Service Pvt. Ltd.; Rabindra Adhikari and Bibek Raj Thapaliya of Nepal Charter Service Pvt. Ltd.; and Mukti Pandey and Subhash KC of Everest Experience and Assistance Pvt. Ltd.

On February 8, the bureau also arrested Dr. Girwan Raj Timilsina of Shreedhi Hospital in Kathmandu for his alleged role in the scheme.

According to police, trekking agencies, rescue operators, helicopter companies and medical providers colluded to arrange unnecessary helicopter evacuations of foreign tourists in Nepal’s mountainous regions. Investigators say the group then submitted falsified documents — including hospital admission and discharge records, medical reports, passenger manifests and insurance claims — to obtain reimbursements from international insurers.

High-altitude trekking routes in the Himalayas often require emergency evacuations because of altitude sickness, injuries and severe weather. Helicopter rescues are common and frequently lifesaving.

Authorities, however, say some operators exploited the system, pressuring trekkers to accept airlifts for minor ailments or staging rescues to generate insurance payouts.

Police have filed cases under organized crime and fraud laws, and the investigation is ongoing, the bureau said.

Allegations of fraudulent rescues first emerged publicly in 2018 following complaints from foreign insurance companies. A task force formed that year by then-Tourism Minister Rabindra Adhikari investigated claims that some tourism operators were inflating evacuation costs and fabricating emergencies.

The task force, led by Ghanshyam Upadhyaya, now Nepal’s finance secretary, reportedly found evidence of collusion among travel agencies, trekking companies, helicopter operators, hospitals and insurance intermediaries. Its report was forwarded to the Ministry of Home Affairs and later to police headquarters.

The case stalled at the time. Officials familiar with the process said pressure from powerful aviation interests contributed to the matter being shelved, and subsequent tourism ministers did not pursue the findings.

International scrutiny intensified after the foreign assistance company Traveller Assist repeatedly contacted Nepali authorities alleging widespread fraud in helicopter rescues and threatened to make its claims public. International media later reported on the practice, prompting some insurers to raise premiums for travel to Nepal or withdraw coverage altogether.

The controversy has raised concerns about oversight in Nepal’s tourism sector, a vital pillar of the country’s economy.

“We have detained two more individuals in this case and the investigation is ongoing,” the bureau said.

The outcome of the probe could have far-reaching implications for Nepal’s tourism and aviation industries, which rely heavily on international confidence in the safety and integrity of mountain rescue operations.