Kathmandu, Dec 19 (PTI) Three Indian nationals were arrested in Nepal on Thursday for alleged involvement in separate cases of illegal 'hundi' transactions and narcotics possession, according to the police.

Police arrested 52-year-old Basant Kumar Rathi, a resident of Rajasthan, along with three Nepalese people executing 'hundi' transactions from a private company's office in the Battisputali area of Kathmandu, according to the Nepal Police news bulletin.

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The police raided the office based on a tip-off and recovered Rs 2.65 million in cash and five mobile phone sets from them.

The four people were arrested, and police initiated further investigation against them.

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Separately, two Indian nationals were arrested from Lumbini province's Nawalparasi district for possessing 10 grams of the narcotic drug brown sugar and Indian bank notes amounting to Rs 27,000.

In Nepal, it is illegal to carry Indian bank notes amounting to more than Rs 25,000 without any supporting document.

Santosh Loniya, 26, and Harindra Kanaujiya, 26, residents of Uttar Pradesh's Maharajgunj district, were arrested after police recovered the drug from the Indian registration motorcycle they were riding during a regular security check.

The two were taken into custody by the police, who initiated further investigation into the matter.

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)