Police on Thursday raided a warehouse belonging to KL Dugar Group and seized five trucks of edible oil.

Following complaints the company has been involved in hoarding the products and artificially hiking the prices, a police team from the Metropolitan Police Range, Teku, raided Jadibuti-based Dugar Food Stores and took control of two trucks each of Dhara and Gyan brand oil and a truck of Sunflow brand oil from.

“We have adopted zero-tolerance policy for those running black markets and selling goods at inflated prices,” said Superintendent of Police Bishwo Raj Pokhrel, spokesperson for the Range. “We have sealed the warehouse and further investigations have begun.”

The police have also arrested Aman Jain, manager of the store, and Pramod Adhikari for interrogation.

Pokhrel said at a time when the markets inside Kathmandu were facing shortage of cooking oil, keeping such a big amount of the products inside warehouse in itself is suspicious. He said the police were keeping special vigilance in other warehouses of the valley and would launch a series of raids soon.

Last week, the Department of Commerce and Supply Management had sought clarification from KL Dugar Group on charge of overcharging customers. The department had sought detailed financial reports from the company.

After India imposed a trade blockade on Nepal, edible oil prices have jumped up to Rs300 per litre from usual Rs150-200 per litre. Consumer rights activists have accused traders of artificially hiking the maximum retail prices.

Talking to the Post last week, KL Dugar Group Managing Director Kumud Dugar had

said the manufacturers were forced to raise the prices due to a hike in the prices of raw materials in India.

“The raw material that used to cost IRs7,300 per quintal previously, now costs IRs9,700,”

he had said, adding the transport fares had increased three-fold, while shipping charges had been raised to $40,000 from $30,000 per shipment.

There are 14 cooking oil manufacturers in Nepal. Of them, 10 are based in Birgunj, while three are operating in Biratnagar and one in Bhairahawa.