Key Points

The Central Investigation Bureau (CIB), the specialised wing of Nepal Police that investigates serious and organised crimes, said in a press statement that Mahara, 68, a senior leader of the Communist Party of Nepal (Maoist Centre), was arrested on Sunday for his alleged involvement in an organised gold smuggling racket. The gold was hidden inside confiscated electronic cigarettes seized at Tribhuvan International Airport nearly three years ago.

Police said an investigation is underway against Mahara under the Customs Act and laws related to organised crime.

On December 25, 2022, a Chinese national, Li Hansong (passport no. EJ 6350030), arrived in Nepal on Fly Dubai flight FZ0587 carrying 730 pieces of electronic cigarettes packed in 73 boxes inside two suitcases. The consignment was confiscated by airport customs officials and kept in the Customs Office warehouse at Tribhuvan International Airport.

During the investigation, it was revealed that Rewant Khadka, a Deputy Section Officer at the same customs office, allegedly colluded with others to steal the seized consignment from the government warehouse. The racket then illegally extracted and sold gold worth NPR 85.52 million concealed inside the vapes.

Police had earlier questioned Mahara in connection with the case after it was found that he had been in contact with some Chinese smugglers. However, Mahara—considered a close confidant of CPN (Maoist Centre) Chairman Pushpa Kamal Dahal ‘Prachanda’—had not been prosecuted at the time.

His son, Rahul Mahara, who was also found to be in contact with the Chinese smuggling ring, was prosecuted in October 2023. The father-son duo had allegedly coordinated with a Chinese national, Daojin Wang, who was later found to be involved in another 60 kg gold smuggling case, according to the police.

Mahara, who has held several high-ranking positions in government—including that of Deputy Prime Minister, Foreign Minister and Finance Minister—has long been a controversial political figure.

In September 2010, he courted controversy when an audio recording surfaced in which he was allegedly heard seeking Rs 500 million from a Chinese individual to buy lawmakers. No case was filed against him, however, and he continued to rise within his party and state positions.

In October 2019, Mahara resigned as Speaker after a staff member of the Parliamentary Secretariat accused him of rape. He denied the allegation and was later acquitted by the court.

- IANS