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For years, the towering peaks of the Himalayas have drawn thousands of thrill-seekers to Nepal. But according to prosecutors, many of those tourists were led into a carefully orchestrated trap: secretly fed baking soda by their own guides to induce severe illness, only to be “rescued” in a highly lucrative insurance fraud scheme.
Following a sprawling, months-long police investigation, authorities filed organized crime and fraud charges against 32 individuals in the Kathmandu District Court. The case implicates a deep network of prominent tourism stakeholders, including trekking agency owners, helicopter operators, and hospital executives.
Nine suspects were produced in court on Sunday, while 23 others remain at large.
The Mechanics of the Fraud
The charges detail a brazen exploitation of the very systems designed to keep mountaineers safe. According to investigators, trekking agencies intentionally made their clients sick, often by lacing their food with baking soda, which can cause severe gastrointestinal distress mimicking altitude sickness or food poisoning.
Once trekkers were incapacitated, the agencies forced them to agree to emergency helicopter evacuations. The operators then produced forged medical and flight documents to bill international travel insurance companies for the exorbitant costs of the phantom emergencies.
The illicit profits were subsequently divided among the guides, the helicopter companies, the trekking agencies, and the cooperating hospitals where the tourists were supposedly treated.
“A charge sheet has been filed at the court,” said Dipak Kumar Shrestha, a spokesperson for the Kathmandu District Court. “The court is recording statements of the accused, giving high priority to this high-profile corruption case.”
In January, authorities arrested six executives from three prominent mountain rescue agencies. Police said that the agencies not only forced unnecessary evacuations but systematically fabricated the paperwork required to pocket the emergency funds.
A Multimillion-Dollar Syndicate
Prosecutors are seeking a staggering 1.51 billion Nepalese rupees (ca. $11.3 million) in total fines from the accused, with penalties varying based on individual offenses.
According to police records, the group scammed at least $19.69 million in insurance money. The investigation accused the Mountain Rescue Service P.Ltd. of orchestrating 171 “suspicious rescues” out of the 1,248 it arranged, netting an estimated $10.3 million in collaboration with local hospitals.
The Nepal Charter Service P. Ltd. is accused of syphoning approximately $8.2 million while the Everest Experience and Assistance P.Ltd. is believed to have scammed about $1.1 million.
A Long-Buried Scandal Revived
The fraudulent rescues have long been an open secret in Kathmandu, severely damaging Nepal's reputation in the global adventure tourism market. In recent years, several major international insurers, including Travellers Assists, completely stopped selling coverage for tourists trekking in Nepal due to the rampant fraud.
Following international media reports in 2018, the Nepalese government formed a probe panel comprised of tourism bureaucrats to investigate the claims. However, the panel's findings were never made public, and the implicated companies faced no disciplinary action.
