Indian Council of World Affairs

Abstract:  The complex relationship between regional environmental geography and interpersonal connections among people of India and Nepal, along with the open international borders, makes the nature and motivations behind cross-border crimes increasingly intricate in various contexts. As a result, security cooperation and strong legal collaboration become crucial. The recently signed agreement on Mutual Legal Assistance in Criminal Matters further enhances security cooperation between India and Nepal by establishing a solid legal framework to effectively address these issues and improve regional stability. 

Introduction 

On 17^th February 2026, India and Nepal signed a long-pending agreement on Mutual Legal Assistance (MLA) in Criminal Matters in Kathmandu,[i] concluding years of negotiations between the two countries. The agreement establishes a formal legal framework to support cooperation on criminal investigations, prosecutions and judicial proceedings between the two countries.^[ii] This includes the collection and sharing of evidence, exchanging information, and coordinating efforts between competent authorities.[iii]

India has 48 bilateral extradition treaties with various countries, including Afghanistan, Bangladesh, Bhutan and Nepal, as well as 12 extradition arrangements, including one with Sri Lanka.^[iv] Additionally, India and Nepal, along with other BIMSTEC members, are signatories of a multilateral convention on mutual legal assistance in criminal matters.^[v] Given that Nepal shares borders with five Indian states and has strong cultural and people-to-people ties and extensive economic and commercial relationships with India, it remains particularly vulnerable to cross-border crimes. These include human trafficking, illegal infiltrations, drug trafficking, terrorism-related offences, smuggling, cybercrime, and financial fraud. In this context, the MLA agreement between India and Nepal assumes crucial importance. 

Background of Security, Legal and Extradition Cooperation between India and Nepal

India-Nepal security cooperation dates back to October 1953, when the first extradition treaty was signed between the two countries. This treaty established a formal legal framework upon which each country agreed to hand over individuals accused or convicted of specified serious crimes committed in the territory of the other country. The primary objective of the treaty was to prevent offenders from escaping justice by crossing the open border and to promote cooperation in criminal matters based on reciprocity and mutual respect for sovereignty. The treaty stipulated that extradition would be granted for defined offences, subject to procedural safeguards, including the requirement for sufficient evidence and proper documentation.^[vi] It also outlined conditions under which extradition could be refused, including cases involving political offences and laid out rules regarding nationality, expenses and legal processes.^[vii] The treaty created a structured, reciprocal mechanism to strengthen law enforcement cooperation and uphold the rule of law between the two neighbouring countries.^[viii]

During the early 2000s, particularly after the 1999 air hijacking^[ix] and the subsequent rise in cases of criminals fleeing to Nepal after committing crimes in India, the need to revise the extradition treaty arose. Additionally, evolving patterns of crimes and changes in international extradition norms further underscored the necessity for revision. The 1953 treaty was limited in scope, as it applied only to specific offences and to nationals of the requesting state only. There was also a growing need to expand extradition provisions to include criminals from third countries. As a result, negotiations were held to revise the treaty, and the text of a new extradition treaty and an agreement on MLA were finalised during home secretary-level talks on 19–20 January 2005.^[x] However, the process could not proceed at that time, although negotiations for an updated extradition treaty continued.

In July 2025, during home secretary-level talks, the text of the revised MLA agreement was finalised, with both sides agreeing to work towards its early conclusion.^[xi] However, the revised Extradition Treaty still remains under discussion. It was anticipated that the new MLA agreement would be signed in New Delhi during the proposed visit of then Prime Minister Oli of Nepal.^[xii] However, due to the Gen-Z protests in September 2025 and the ousting of the Oli-led government, the signing of this agreement was delayed. The bilateral talks to finalise a date for signing the MLA have been ongoing for the past six months and have concluded in February 2026. The agreement will come into force following diplomatic notification and is expected to improve institutional coordination.

The MLA’s Importance for Preventing Cross-border Crime in the Bordering States

The MLA agreement is particularly significant for bordering states in addressing cross-border crimes, including money laundering, the trafficking of women and children, and illegal cross-border movements of third-country citizens. Indian states like Bihar and Uttar Pradesh share an international boundary stretching approximately 1,300 km along Nepal’s Terai region, which has a free and open border and frequent cross-border movement of people and goods. Given the context, it becomes easier for criminals to commit crimes and hide.

Research suggests that the porous India-Nepal border created opportunities for criminal activity due to disparities in administration and law enforcement on both sides. Historical accounts indicate that planned roadside robberies targeted mail carriers during the colonial period.^[xiii] Colonial records further reveal that as cross-border movement increased over the years, armed robberies involving postal workers became more frequent, occasionally resulting in fatalities.^[xiv] In the post-independence era, the nature of cross-border crimes has become increasingly complex, posing significant challenges to border management and governance of law and order within the region.

Human trafficking stands out as one of the major cross-border crimes. Data presented by the Minister of State in the Ministry of Women and Child Development in India’s upper house during a response to a question on this issue reveals a notable incidence of cases in border states from 2018 to 2022 (Table 1). Among these states, Bihar ranks the highest.

Table 1: Human Trafficking Victims in the Bordering States During 2018-2022

Source: Prepared by the author from the data presented in the Indian Parliament. https://sansad.in/getFile/annex/267/AU3664_ZnOK5f.pdf?source=pqars.

A research study report published by the Asia Foundation highlights that the open border between Nepal and India significantly complicates the identification of trafficking victims. Institutional gaps further impede effective screening processes, including practices that require victims to reconcile with their perpetrators and resolve cases through financial settlements.^[xv] Additional obstacles involve the absence of clear government guidelines on victim identification, limited awareness of legal protections among victims, and alleged collusion between officials and perpetrators.^[xvi] In this context, the MLA agreement between India and Nepal is anticipated to play a crucial role in mitigating the increasing incidence of trafficking, verification and legal protection. 

Another significant cross-border challenge is the unauthorised cross-border infiltration and illegal infiltration of third-country nationals through the porous border. This situation poses risks such as insurgency, drug trafficking, terrorism and the rise of religious fundamentalism. For instance, following unrest during the Gen-Z protests in Nepal in September 2025 and reported jailbreaks, at least ten undertrial prisoners escaped from a Nepali jail and attempted to enter Bihar. However, they were detained by the Sashastra Seema Bal (SSB) at the India-Nepal border and sent to police custody to prevent their movement into Indian territory, amid concerns about cross-border fugitives and broader law-and-order implications.^[xvii] Similarly, in a recent joint operation by the Bihar Police and SSB, two Nepalese nationals were arrested near Sindhwalia Chhatiya Ghatin, West Champaran district of Bihar for allegedly transporting 39 kg of ganja (cannabis) on a motorcycle.^[xviii] In another recent incident, a man was apprehended by the SSB at the India-Nepal border in Balrampur district, Uttar Pradesh, for allegedly trying to cross into Nepal with counterfeit documents claiming to be a Nepali citizen.^[xix] Such frequent incidents along the border region are not a new occurrence and may not receive prominent coverage on major media platforms, although local news outlets provide timely and relevant coverage of these incidents regularly. 

Furthermore, illegal wildlife trade and cross-border poaching along the porous India-Nepal border, particularly in the forested Terai region that supports endangered species such as tigers, elephants, leopards and rhinoceroses, represent a significant cross-border crime requiring enhanced security cooperation.^[xx]

Additionally, cross-border crimes are no longer limited to traditional smuggling but are now increasingly linked to sophisticated, technology-driven financial crimes requiring coordinated international policing. A recent fraudulent case involving a ₹15-crore “digital arrest” highlights the growing complexity of cross-border crime between India and Nepal, especially within cyber fraud networks.^[xxi] Investigations revealed that this scam, which targeted a Delhi-based NRI couple, was part of a transnational syndicate with operational connections extending to Nepal and Cambodia.^[xxii] In this scheme, handlers collaborated to execute fraud, while local accomplices in India managed mule bank accounts to facilitate money laundering.^[xxiii] These crimes increasingly feature multi-layered international networks that employ tactics such as impersonation and “digital arrest” to exploit victims, with funds transferred through deceit. 

The frequent cross-border crime incidents illustrate how criminals have exploited the deficiencies in coordinated law enforcement and the complexities of legal frameworks, as well as the lack of effective collaboration between India and Nepal, to perpetrate serious offences and evade capture. The recently executed MLA agreement may facilitate improvements in addressing these challenges. 

Conclusion 

Security is a fundamental aspect of any state’s ability to ensure the protection of its citizens, environment, wildlife, and natural resources. The close interplay between regional environmental geography and the interpersonal connections among people of India and Nepal, combined with open international borders facilitating the movement of individuals, has made cross-border crimes increasingly complex in nature and motivation over time. In this context, enhanced security cooperation, alongside robust legal and judicial collaboration, is essential for countries such as India and Nepal. Although Nepal and India have established numerous joint initiatives and bilateral mechanisms to address cross-border security challenges and criminal activities, the recent signing of the Mutual Legal Assistance agreement fortifies this partnership and provides a strong legal framework for more effectively tackling these issues.

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*Dr. Subodh Chandra Bharti is a Research Associate at the Indian Council of World Affairs (ICWA)
Disclaimer: The views expressed are personal.

Endnotes

[i] Government of Nepal, Ministry of Law, Justice and Parliamentary Affairs, प्रेस विज्ञप्ति। २०८२/११/०५ (नेपाल सरकार तथा गणतन्त्र भारत सरकारबिच फौजदारी विषयमा पारस्परिक कानूनी सहायता सम्बन्धी सम्झौता (Agreement between the Government of Nepal and the Government of the Republic of India on Mutual Legal Assistance in Criminal Matters) मा हस्ताक्षर सम्पन्न भएको सम्बन्धमा) (Kathmandu: Ministry of Law, Justice and Parliamentary Affairs, 2082 [B.S.]), https://www.moljpa.gov.np/public/uploads/e9d1f397-e99b-4d56-b153-2d38bccba066.pdf (Accessed March 12, 2026).

[ii] Anil Giri, “Nepal and India Sign Mutual Legal Assistance Deal After Years of Talks,” The Kathmandu Post. February 18, 2026. https://kathmandupost.com/national/2026/02/18/nepal-and-india-sign-mutual-legal-assistance-deal-after-years-of-talks (Accessed March 12, 2026).

[iii] Ibid.

[iv] Government of India. “List of Extradition Treaties/Arrangements,” Ministry of External Affairs, Government of India, last updated February 20, 2023. https://www.mea.gov.in/leta.htm (Accessed March 12, 2026).

[v] Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). Convention on Mutual Legal Assistance in Criminal Matters, signed March 30, 2022, PDF, 17 pp. https://bimstec.org/images/content_page_pdf/1696679776_Signed%20BIMSTEC%20Convention%20on%20Mutual%20Legal%20Assistance%20in%20Criminal%20Matters.pdf (Accessed March 20, 2026).

[vi] Ministry of External Affairs. “Treaty of Extradition Between the Government of India and the Government of Nepal, Kathmandu, October 2, 1953, Ministry of External Affairs, Government of India, accessed February 18, 2026, https://www.mea.gov.in/bilateral-documents.htm?dtl/7309/Trade+of+Extradition.

[vii] Ibid.

[viii] Ibid.

[ix] Gautam Chawla, “IC-814: Facts, Trial, Verdict, and Implications,” Institute of Peace and Conflict Studies, February 18, 2008, https://www.ipcs.org/comm_select.php?articleNo=2492.

[x] Ministry of External Affairs, Government of India, “On India-Nepal Home Secretary-level talks,” press release, January 20, 2005, https://www.mea.gov.in/press-releases.htm?dtl/5853/On+IndiaNepal+Home+Secretarylevel+talks.

[xi] Press Information Bureau, “India and Nepal Holds Home Secretary Level Talks in New Delhi,” Press Release, Ministry of Home Affairs (July 23, 2025), https://www.pib.gov.in/PressReleasePage.aspx?PRID=2147422®=3&lang=2.

[xii] Anil Giri, “Misri Visiting Nepal to Set Stage for PM Oli’s India Trip,” The Kathmandu Post, August 7, 2025, https://kathmandupost.com/national/2025/08/07/misri-due-in-nepal-to-set-stage-for-pm-oli-s-india-visit.

[xiii] Mithilesh Kumar, “Migrants, Smugglers, Traders, and Treacherous Rivers: A Genealogy of the Bihar‑Nepal Border from Treaty of Sugauli to c. 1947,” Journal of Migration Affairs 1, no. 1 (September 2018), 3–20, accessed March 3, 2026, https://tiss.ac.in/uploads/files/2._Mithilesh_Kumar.pdf.

[xiv] Ibid.

[xv] The Asia Foundation, Optimizing Screening and Support Services for Trafficking in Persons Victims in Nepal. San Francisco: The Asia Foundation, 2024. https://asiafoundation.org/wp-content/uploads/2024/08/Optimizing-Screening-and-Support-Services-for-Trafficking-in-Persons-Victims-in-Nepal_English-Report.pdf (Accessed March 25, 2026).

[xvi] Ibid.

[xvii] The Hindu. “At Least 10 Undertrials Fleeing Nepal Jail Detained in Bihar,” The Hindu. September 10, 2025. https://thehindu.com/news/national/at-least-10-undertrials-fleeing-nepal-jail-detained-in-bihar/article70033841.ece (Accessed March 13, 2026).

[xviii] The Times of India. “2 from Nepal Arrested with 39kg Ganja,” The Times of India (Patna), February 08, 2026. https://timesofindia.indiatimes.com/city/patna/2-from-nepal-arrested-with-39kg-ganja/articleshow/128079691.cms (Accessed March 13, 2026).

[xix] PTI. “Man Held in UP’s Balrampur for Attempting to Cross India‑Nepal Border Illegally,” PTI, March 3, 2026., https://www.ptinews.com/story/national/man-held-in-ups-balrampur-for-attempting-to-cross-india-nepal-border-illegally/3432018 (Accessed March 15, 2026).

[xx] “Strengthening Cross Border Wildlife Crime Prevention and Law Enforcement Between India and Nepal,” Wildlife Trust of India. https://www.wti.org.in/projects/strengthening-cross-border-wildlife-crime-prevention-and-law-enforcement-between-india-and-nepal/ (Accessed March 15, 2026).

[xxi] The Times of India. “Cambodia, Nepal Links to ₹15 Cr Fraud,” The Times of India. February 6, 2026. https://timesofindia.indiatimes.com/city/delhi/cambodia-nepal-links-to-15cr-fraud/articleshow/127419822.cms (Accessed March 10, 2026).

[xxii] Ibid.

[xxiii] Ibid.