33 Individuals Implicated in Fake Rescue Scheme Targeting Tourist Insurance Payouts, CIB Submits Report

Kathmandu. Thirty-three individuals have been found to be involved in 'fake rescue' operations in the mountaineering and trekking sector, fraudulently claiming illegal insurance money. The Central Investigation Bureau (CIB) of the police has completed its investigation and submitted the investigation report to the Office of the Government Attorney.

AIG Dr. Manoj KC of the CIB told Ratopati that the investigation revealed 33 people were involved in 'fake rescues' conducted since 2022.

The CIB's investigation report submitted to the District Government Attorney's Office in Kathmandu recommended that 33 individuals be named as defendants. Ten people have been arrested on charges of profiting by claiming health insurance through 'fake rescues' of tourists. The police have recommended to the government attorney to file a charge sheet in court naming an additional 23 individuals as absconding defendants.

The police opinion suggests that those involved in the 'fake rescue' should be prosecuted under integrated charges including offenses against the national interest, criminal gains, document-related offenses, and organized crime. Those arrested in connection with the case include Dr. Girwaraj Timilsina, operator of Shriddhi International Hospital; Sandip Tiwari, operator of Royal Holidays Adventure & Travel Company; Jayaram Rimal, operator of Mountain Rescue Service Pvt. Ltd.; Vivek Pandey, Manager; Rabindra Adhikari, operator of Nepal Chartered Service; and Vivek Raj Thapaliya, Operation Manager.

Mukti Pandey, operator of Everest Experience & Associates Pvt. Ltd., and Manager Subash KC, as well as Pasang Sherpa, operator of Panorama Himalaya Trekking & Expedition Pvt. Ltd., and aviation management expert Rajendra Bahadur Singh are also in custody.

'Fake rescue' investigations began after a complaint was registered on 11 Magh 2081. The police submitted the investigation report after approximately a month and a half of investigation.

The police opinion suggests claiming a compensation amount of NPR 948.4 million, USD 2.998 million, and 14,000 Euros from the accused. The investigation revealed the involvement of 16 trekking companies, 5 rescue companies, 3 hospitals, 4 helicopter companies, and 3 local agents of international insurance companies in the 'fake rescue' operations. One guide was also found to be involved in the case, according to a police official involved in the investigation.

Stating that the accused were affiliated with many companies in the 'fake rescue' scheme, CIB Chief (AIG) KC said that the investigation report was submitted naming 33 individuals as defendants.

• Hospitals Sending Patients for Shopping

Operators of three hospitals, including Shriddhi International Hospital located in Lazimpat and Swacon Hospital operating in the Dhobikhola corridor, were found involved in the 'fake rescue'. Dr. Girwaraj Timilsina, operator of Shriddhi International Hospital, has been arrested, while an arrest warrant has been issued by the court against Dr. Minalma Pandey, operator of Swacon Hospital. She is currently absconding.

It was also discovered that after rescuing tourists from the mountaineering and trekking sector, the operator of Swacon Hospital forcibly admitted them and sent them shopping during the day. A police official involved in the investigation told Ratopati that a tourist rescued by helicopter from the Everest region was sent shopping during the day and only kept in the hospital in the evening.

According to police sources, it was found that the hospital operator forcibly admitted the tourist to Swacon under the pretense of a fine if they were not admitted to the designated hospital, and confiscated their passport in collusion. After admitting the patient through a 'fake rescue', the hospital operator would contact the trekking agency and Sherpas to inform them of the situation. A foreign national has filed a complaint with the CIB via email, stating that Swacon Hospital forcibly admitted them.

It was found that the hospital operator would not return the passport until a guarantee of payment was received from the insurance company. The operator of Swacon Hospital was also found to have made tourists sign documents stating they were 'not forced to be rescued' and were 'satisfied with the hospital's services.'

Hospitals involved in the 'fake rescue' case were admitting patients primarily for insurance claims, exceeding protocol. The admitted tourists would go to hotels and sightsee. A CIB official involved in the investigation revealed, 'It has been uncovered that discharge papers were given to tourists later.'

The hospitals were making insurance claims by creating fake medical reports. The investigation found that they would prepare inflated bills, claim health insurance, and then share the money with the operators of the rescue and trekking companies.

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• Role of Rescue and Trekking Companies?

The involvement of 16 trekking companies and 5 rescue companies has been identified in the 'fake rescue' operations. Trekking companies were selecting insurance-friendly companies for tourists and preparing the tourists' itineraries. It was found that trekking companies managed guides and coordinated with rescue companies. Officials involved in the investigation state that trekking companies received illegal commissions from rescue companies and hospitals.

Rescue companies were found to play the role of taking the insurance policy papers of tourists needing rescue from trekking companies and transporting them by helicopter to the concerned hospitals. Rescue companies were claiming insurance payments after securing payment guarantees from insurance companies.

The police investigation concluded that tourist guides would create fabricated emergencies in high-altitude areas, compelling the call for a helicopter. Guides also convinced tourists that a helicopter rescue was necessary.

The investigation revealed that helicopter companies played the role of sending forged passenger manifests to rescue companies after rescuing tourists. An official involved in the investigation told Ratopati that helicopter companies were involved in fake rescues in collusion with rescue companies with the aim of increasing business for their regular flights.