Nepal’s Central Investigation Bureau (CIB) has charged 32 individuals with organised crime and offences against the state in connection with a fake helicopter rescue scheme that allegedly defrauded international insurers of nearly $19.7mn between 2022 and early 2026, The Kathmandu Post reported on March 27.
The CIB found that rescue companies, trekking agencies and hospitals colluded to force trekkers into unnecessary evacuations and produce fraudulent documents to claim insurance payouts. Mountain Rescue Service P. Ltd. alone is alleged to have arranged 171 suspicious rescues out of 1,248 total flights, scamming over $10mn. Nepal Charter Service allegedly carried out 75 fake rescues out of 471 flights, claiming around $8.2mn, while Everest Experience and Assistance was linked to 71 suspicious rescues out of 601 flights, with claims totalling $11.04mn.
On March 12, the CIB charged operators and staff from three helicopter companies: Mountain Helicopters, Manang Air, since rebranded as Basecamp Helicopters, and Altitude Air. Physicians and administrators from Swacon International Hospital, Shreedhi International Hospital and Era International Hospital were also charged.
Nine individuals were produced before Kathmandu District Court in early April 2026, with a further 23 remaining at large. Those produced include executives from Everest Experience and Assistance, Mountain Rescue P. Ltd., Nepal Charter Services, Shreedi International Hospital, Royal Holidays Adventure, Himalaya Trekking and Expedition and Flying Yak.
The most widely circulated allegation, that some guides deliberately administered substances to mimic altitude sickness in order to justify evacuations, has not been substantiated. Nepal Police’s CIB said it found no evidence to support the claim, though the story drew significant international coverage before the clarification.
The fraud had been flagged years earlier. Australia-based assistance firm Traveller Assist repeatedly warned Kathmandu that major insurers would stop covering Nepal trips if fraud continued. A fresh public complaint in September 2025 triggered the latest full-scale investigation, leading to arrests from January 2026 and charges filed in March 2026. Weak regulatory follow-up after an earlier 2018 review allowed the scheme to persist and expand.
The case has prompted calls for real-time monitoring of rescues, transparent billing practices, mandatory reporting mechanisms, and stronger coordination between government agencies, helicopter operators, hospitals and trekking agencies. The government and tourism authorities are under pressure to implement changes before the next peak season. Tourism accounts for around 8% of Nepal’s GDP.
“When there is no action against crime, it flourishes,” said a Nepal police chief in January 2026. — The Kathmandu Post