Police arrested three Indian gold traders based in Kathmandu with 9.5 kg illegal gold on Thursday night. 

Kathmandu Metropolitan Crime Division said brothers Bikram and Bibek Mittal, originally from West Bengal, and Bhagirath Chaudhari of Rajisthan were held with the gold worth Rs 42.62 million in the market. 

The Mittal brothers own Bhagya Laxmi Jewellers at Peanuts Building in New Road while Chaudhari is their gold supplier.

“What we know so far is the gold had been smuggled from China through Tatopani route,” said Shakul Bahadur Thapa, spokesperson of the division. The government allows commercial banks to import only 20 kg gold in a day. Gold traders, however, say they need at least 35 kg gold to meet the demand. (PR)