On July 18, 2024, authorities at Tribhuvan International Airport (TIA) intercepted one of the most memorable hauls: 100 kilograms of gold. The discovery raised immediate alarm about the efficiency, or lack thereof, of the security systems.
The Smuggling Operation
Authorities seized 100 kilograms of gold hidden in motorcycle brake shoes and electric shavers before it could be smuggled into India for Ready Trade Pvt. Ltd. The Department of Revenue Investigation (DRI) swiftly detained 18 individuals, Nepali, Chinese, and Indian nationals, and formed a committee to investigate how such a large shipment bypassed scrutiny at a major entry point.
As investigators dug deeper, the story widened. Before the July seizure, Ready Trade had already brought in nearly 1,997 kilograms of gold from Hong Kong, suggesting the interception was merely a drop in the ocean.
A warehouse raid revealed weighing and melting equipment, along with packaging materials used for concealment. Even more suspiciously, the company’s listed owner turned out to be a daily wage worker from Dolakha and not a trader, indicating the company may have served as a front for a larger money laundering operation.
This was not the first gold scandal, but another episode exposing the deep organisation of a long-standing gold smuggling underworld. Over the years, case after case has pointed to systemic failure: in 2017, 33 kilograms of seized gold disappeared from TIA; later, a senior Maoist figure was linked to nine kilograms disguised as e-cigarettes.
Leaked photos and videos circulating on social media have repeatedly shown alleged smugglers with powerful political figures, heightening suspicion of political cover and insider involvement.
The History of Gold and Power
Gold, a symbol of wealth and purity, is rooted in a history far from clean. Its allure shaped empires: Spain in the Americas, Britain in South Africa and India, and European powers partitioning continents—all driven by the pursuit of riches.
Behind the romance lies a legacy of violent extraction, forced labour, displacement, and ecological destruction. Today, the global gold supply chain remains marred by unethical mining, toxic waste, and exploitation from the Amazon to Congo.
Nepal’s relationship with gold, though not colonial, runs deep. For centuries, gold moved through Himalayan passes as traders travelled between Lhasa and the Indian plains, embedding the metal into Nepal’s economy and culture. Gold jewellery became central to weddings, dowries, and family wealth.
As state regulation lagged, smuggling evolved into a shadow economy. During the Panchayat years, underground networks expanded, turning Nepal into a transit stop between Tibet and India. The present crisis is a continuation of this legacy, shaped by extraction, greed, and political complicity.
Systemic Failures and Corruption
The July 2024 bust exposed major security lapses at TIA, questioning how scanners supposedly sensitive enough to detect a single coin missed 100 kilograms of gold. Suspicions of complicity intensified when it emerged that airport security had been awarded to a private firm previously implicated in smuggling.
On July 18, 2023, exactly a year before the Ready Trade incident, authorities seized 61 kilograms of gold hidden inside motorcycle brake shoes, also imported from Hong Kong. The investigation pointed to prominent political figures, including former Maoist leaders, though only customs officials, intermediaries, and a few foreign nationals were arrested.
The situation grew more complicated as investigative reporters revealed that Krishna Bahadur Mahara and his son had pressured officials to auction off the confiscated gold instead of preserving it as evidence. Phone records supported the claim, yet the gold still vanished, another example of corruption penetrating Nepal’s institutions.
Selective prosecution is now predictable. The fake Bhutanese refugee case jailed leaders from multiple parties, but no major Maoist figure was charged. The Lalita Niwas land scandal implicated leaders across the political spectrum, yet again, top Maoists escaped consequences.
Public trust continues to deteriorate as corruption cases touch the highest offices. Efforts to shield family members, influence police transfers, and delay court orders have made accountability appear increasingly out of reach. Despite a Supreme Court order to investigate Madhav Kumar Nepal and Baburam Bhattarai in the Lalita Niwas case, no progress has been made; both men remain politically shielded.
Meanwhile, the government’s silence on the 2007 Gaur Massacre shows how politically inconvenient cases are allowed to fade.
Why Smuggling Thrives and What Lies Ahead
Gold smuggling persists due to the open border with India, high import taxes, weak enforcement, and entrenched corruption. During peak wedding seasons, daily demand can reach 50 kilograms, while legal imports supply only about 20, leaving ample room for smuggling.
Investigations by the Central Investigation Bureau (CIB) uncovered that digital payment platforms like Paywell Nepal and Sajilo Pay laundered billions of rupees to finance smuggling operations, handling hundreds of millions of dollars without authorisation from Nepal Rastra Bank.
By 2025, the situation had escalated. Gold prices repeatedly hit new records, peaking at NPR 626,940 (USD 4,357) per ounce before settling at Rs 617,368 (USD 4,292) per ounce in mid-December. Demand remained strong, especially in the jewellery sector.
In response, legal imports surged. Nepal imported 902 kilograms of gold between mid-July and mid-November. Nepal Rastra Bank raised the daily import quota from 20 to 25 kilograms. The government halved customs duty from 20 to 10 per cent, boosting formal imports but increasing profit margins for black-market traders. Experts estimate that 5–6 tonnes still enter Nepal illegally each year.
These trends indicate that gold, legal and illicit, is now firmly rooted in Nepal’s economic system. Rising prices, strong demand, weak institutions, and persistent political interference have created ideal conditions for smuggling networks to survive and perhaps remain for a long time.
Sudipa Mahato is a junior editor with Nepal Connect.
