Police have found the alleged involvement of three Chinese nationals in the 21 kilograms of gold seized from Budhanilkantha in Kathmandu on Thursday, according to investigators.

An officer at the Kathmandu Valley Crime Investigation Office in Teku told Kantipur that the Chinese nationals had allegedly stored the smuggled gold with the help of a Nepali citizen. Police had been conducting surveillance of the location for more than a week on suspicion that the gold was being stored, according to the source.

Of the seized gold, 11 kilograms were in processed form, while another 10 kilograms were being kept for processing, police said.

Information about the suspected storage of the gold had also reached Home Minister Sudan Gurung, according to the source. “We suspect the gold came from China and had been kept there for several days,” the investigating officer said. “Some people have already been arrested, and their statements could reveal more.”

The police are also examining the background and role of the Nepali citizen allegedly involved in storing the gold. Investigators said the involvement of the three Chinese nationals has so far been established, but further details could emerge from the statements of those arrested.

Police had recovered the gold acting on a tip-off. The exact number of people arrested and further details about the origin and intended destination of the gold were not immediately available.

This is not the first major gold seizure by police in Kathmandu.

In July 2023, police seized 60 kilograms of gold hidden in brake shoes after it had passed through customs at Tribhuvan International Airport. The case exposed an organised smuggling network with links to China.

Earlier, the 2017 murder of gold smuggler’s carrier Sanam Shakya led authorities to uncover a network that had allegedly smuggled 3.8 tonnes of gold over four years. The gold, brought from the United Arab Emirates through Tribhuvan International Airport, was destined for India.

Shakya was killed while smugglers were trying to recover 33 kilograms of missing gold. The Ministry of Home Affairs subsequently formed a high-level investigation committee led by then joint secretary Ishwar Raj Paudel. The investigation resulted in charges against 63 people, including police officers.

Much of the gold smuggled through Nepal is believed to be destined for India, with Nepali citizens often used as couriers and facilitators by organised smuggling networks.

The story has been updated.