The stalemate has been blamed on the changes in the system of rewarding the police a percentage of the proceeds as commission.

“In the past, the police used to undervalue the confiscated products with the expectation that they would get a higher commission if the customs office auctioned them off quickly,” said an official at the Mechi Customs Office. After the percentage of the commission was slashed, the police took to showing a high value, added the official.

Customs officials said that the police now report the product’s price to Rs 200 per kg which is higher than the market price. The security forces used to report the betel nuts as being worth Rs 80 per kg when they were getting a high commission. “There was no problem of betel nuts lying unsold in the customs warehouse when the police were getting a high commission,” said the source. According to the customs office, it has 6,900 kg of betel nuts worth Rs 1.38 million in its godowns that are starting to rot.

Customs Officer Gopi Upreti said two big warehouses were filled with confiscated betel nuts. “There is no storage space if more contraband turn up,” he said.

As per the customs office, traders are not ready to purchase the betel nuts at the high price fixed by the police. Although the customs office has been auctioning off small amounts of the confiscated products, massive stocks remain due to high price.

In addition to the actual cost, the traders have to pay 13 percent VAT and Rs 565 in customs service charge and transport charge. “This makes the betel nuts very expensive,” said a trader.

The government recently stopped the practice of giving the police a commission on certain confiscated goods like India-bound betel nuts, Chinese goods and cattle. Earlier, the government had been providing a  20 percent commission to the applicant and a 15 percent commission to the informer.

Similarly, the government has revised the commission rate on contraband on which no customs duty or VAT is imposed. The government pays a 10 percent commission to the notifying agent and a 20 percent commission to the police who present the smuggler along with the illegal merchandise.

Meanwhile, the police have reportedly become less enthusiastic in apprehending smugglers after their commission was decreased. They have also been accused of working in collusion with traders. Mechi Zonal Police Chief Superintended of Police Puskal Raj Regmi refuted the charges saying that they had been working with extra vigour to control smuggling. “Official records prove that.”