Police on Friday arrested a man for allegedly running the illegal business of hundi (transfer of money through illegal channels) from Kathmandu and seized over Rs 1.9 million in cash from him.

The Metropolitan Crime Division, acting on a tip off, arrested Dundi Raj Neupane, 40, of Syangja, who is currently residing in Samakhusi, Kathmandu, on charges of running illegal hundi business, according to Superintendent of Police Ishwar Karki, who is also the spokesperson for the division.

The division has increased vigilance following several tip offs regarding involvement of several individuals in running illegal money transfer business in Kathmandu.

"Neupane was arrested by our officers from the Bishal Bazar area and recovered over Rs 1.9 million cash and a mobile phone from hispossession," said Karki. “Preliminary investigation has revealed that Neupane used to operate hundi business from viber.”

Beside illegal hundi business, Neupane runs a cloth shop called Hamro Gandaki Enterprises in New Road, he said. “He will be handed over to the Revenue Investigation Department for further investigation.”

Hundi is an informal money transfer system that uses closed networks to transfer cash without actually doing a cross-border transaction. Brokers in two different countries facilitate the money transfer through a mutual agreement. One receives cash from the remitter and the other hands it out to the beneficiary allotted by the remitter.

Crime rates in the Kathmandu Valley had dropped significantly during the lockdown.But ever since the government relaxed the lockdown on June 10, the crime rate in the Valley has risen significantly.

“We have seen a rise in crimes such as banking offences and social crimes after lockdown relaxed,” said Senior Superintendent of Police Sushil Kumar Yadav, spokesperson for the Metropolitan Police Office, Ranipokhari.